Bitcoin is still strangling at the $16,000 price level with no significant move up or down. This is normally given the historically low volatility recorded in the market. However, there could be some good rallies for the digital asset in the near future, but it depends on what BTC whales do.
Bitcoin Whales Not Interested
A look at bitcoin whale transactions during the month of December shows that whale interest in the digital asset is waning. This coincides with BTC’s low price ranges during this time, and with so little movement it becomes harder to make a profit.
These whale transactions valued at $1 million and more have declined recently. This shows a lack of interest in both buying and selling from these large investors. As a result, the price of bitcoin has continued to stagnate between $16,600 and $16,800. Essentially, this lack of activity from the major BTC whales is neither bullish nor bearish. However, the next trend will be determined based on what these big holders decide to do from here.
BTC whale interest declines in crypto winter | Source: Santiment
If this Sanitation the graph shows that a decline in interest in whales usually coincided with periods of low prices. However, if there were significant accumulation of these major holders, then the price of bitcoin will start another bull rally.
Given that whale trades worth at least $1 million are at a 2-year low, this is an excellent setup for at least a short-term rally. If the whales increase their BTC holdings during this time, the impact on the price of BTC will become immediately apparent.
How high can BTC go?
Santiment notes that an accumulation trend of these great whales would send a historic bullish signal for the digital asset. This means that such events have always led to an upward rally in the past. When this happened in August 2021, it triggered the rally where bitcoin hit its all-time high of $69,000.
BTC price falls below $16,700 | Source: BTCUSD on TradingView.com
This time, with the BTC price so low, such a trend would lead to an increase in the price of the digital asset by at least 10%. From here, a 10% increase would mean bitcoin would once again cross the USD 20,000 level, although a lot of resistance would be expected from the bears at such levels.
On the other hand, a sustained decline will increase selling pressure on BTC from here. That would mark another reversal to the $15,000 level. Now it becomes a waiting game to see what happens first.
The price of BTC stood at $16,684 at the time of writing.
Featured image of GoBankingRates, chart from TradingView.com