After Bitcoin (BTC) price all of a sudden dropped from around $eighteen,500 to $17,200, some traders began to question whether a local summit had formed but there are multiple factors that suggest the balderdash run is still intact.

Following the initial pullback, BTC continuously showed extreme volatility, demonstrating market uncertainty.

The four factors that show Bitcoin'southward momentum remains strong are whale inflows, a stiff market response, resilience above each whale cluster, and loftier open interest.

Whales are not selling large amounts of BTC

According to data from CryptoQuant, whales are non selling large amounts of BTC. This trend is noteworthy because Bitcoin is testing a heavy multiyear resistance level at $18,000.

Bitcoin exchange whale ratio. Source: CryptoQuant

Ki Immature Ju, the CEO of CryptoQuant, said the Commutation Whale Ratio remains low. Given the relatively low selling pressure from whales, Ju said:

"Dearest $BTC shorters, You tin can call me a moon boy, but unfortunately, at that place won't exist a mass-dumping like March this year. Substitution Whale Ratio (ninety-solar day MA) is still very low. Long-term bullish is inevitable."

If the selling pressure coming from miners and whales remains low in the short term, BTC could accept sufficient firepower to kickstart a broader rally.

Bitcoin remains resilient above central whale clusters

Whalemap, an on-concatenation market analysis firms that tracks whales, have plant a like trend. The analysts said that whales accumulated BTC throughout November The price points from which whales bought BTC are holding.

In the near term, the key whale cluster support for Bitcoin is at $16,411. Equally long as BTC stays stable above the $16,400 support surface area, the bull run will probably concord together.

A whale cluster forms when whales purchase Bitcoin at a certain toll level and do not motion them elsewhere. The analysts explained:

"Bubbles point prices at which whales have purchased BTC that they are currently holding. Bubbling also visualise back up levels. Final fourth dimension we bounced from $fifteen,762 and had a 15% price increase. Is the new chimera at $xvi,411 going to hold this time too?"
Bitcoin whale clusters. Source: Whalemap

Potent market response after a steep pullback

In addition to favorable whale information that depict the resilience of Bitcoin, every major dip has been speedily bought up in the last 24 hours.

On Nov. 18, Bitcoin dropped to $17,215 and $17,284, recording big pullbacks from its $18,520 pinnacle. Still, BTC recovered most immediately afterwards each minor correction, stabilizing to a higher place $17,600 for nigh of the time.

Open interest is growing

Data from Skew shows that the open up involvement in the Bitcoin futures market is increasing. The open interest of the futures market shows the sum of all long and brusque contracts.

Loftier open interest typically means that there is a significantly high number of traders speculating on the price of Bitcoin.

In the nigh term, this means major cost movements are inevitable. Whether the volatility spike would cause BTC to increase or suffer a deep correction remains to be seen.

However, based on the optimistic whale data and the marketplace'due south stiff reaction to big dips, the chances of the next volatiltiy fasten favoring Bitcoin are higher.