Whales pulling up while Bitcoin building new support level

Key points: 

• $16,800 is becoming an increasingly important support area for BTC prices.
• $16.8K is the new 100 Weekly PoC for Bitcoin. In simple terms in the last 100 weeks, this is the level where most volume has been traded, which is creating a potential bottom formation.
• Longer-term PoCs include $9,200 for 200 weeks and $3,700 for 300 weeks — close to the March 2020 cross-market COVID-19 crash lows.
• If so, Bitcoin could avoid some of the worst doomsday predictions in recent months, including a drop to $10,000 or even lower.
• Additionally, a chart of the Binance order book shows that the largest group of Bitcoin whales is showing increasing interest between $16K and $17K.

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Bitcoin may be busy forming fundamental support within its current tight trading range, new research suggests.

In a Jan. 6 tweet, trading platform Trend Rider noted that $16,800 is becoming an increasingly important support area for BTC prices.

Control point setup under $17,000?

Bitcoin's lack of volatility has prompted commentators to debate when a breakout might occur -- and where it might go.

However, the trading range that has been tightened since the November FTX event remains in check so far.

Now, on-chain analysis suggests that, contrary to some assumptions, BTC/USD may not need to fall further during the current phase of the bear market.

Trend Rider looked at the one-week chart and marked $16,800 as the current 100-week Point of Control (PoC) - the price level that generated the most volume during a given period.

The longer the cycle, the greater the transaction volume, and the stronger the conceptual PoC support or resistance.

"A new bottom," reads the accompanying commentary:

“~16.8K is the new 100 Weekly POC for Bitcoin. In simple terms on the last 100 weeks this is the level where most volume has been traded, which is creating a potential bottom formation.”

BTC/USD annotated chart. Source - Trend Rider [Twitter]

If so, Bitcoin could avoid some of the worst doomsday predictions in recent months, including a drop to $10,000 or even lower.

Longer-term PoCs include $9,200 for 200 weeks and $3,700 for 300 weeks — close to the March 2020 cross-market COVID-19 crash lows.

Whale activity a few centimeters higher

In terms of exchanges, the trading channel of Bitcoin was also firm that day.

According to Monitoring Resource Material Indicators, the strongest support and resistance levels are around $16,000 and $17,000, respectively.

Additionally, a chart of the Binance order book shows that the largest group of Bitcoin whales is showing increasing interest between the two price points.

“Whales seem to like this range for Bitcoin,” commented Material Indicators.

BTC/USD order book data (Binance). Source - Material Indicators [Twitter]