Santiment, a blockchain analytics platform, has released an analysis on Bitcoin (BTC) that looks into how whale behavior will affect the price of the king cryptocurrency.
The group of Bitcoin owners who hold between 1,000 and 100,000 BTC is recognized for being a solid indication of the direction that the price will go in the long run. Santiment attempts to have a better understanding of what could be in store for the price by studying their behavior.
Recent data indicates that they have been operating as a net seller, and the price has been moving in tandem with this trend.
“It is with confidence that we can predict sideways or even lower prices for BTC in the next 6-12 months.”
What Next for Bitcoin Price?
According to Santiment’s research, bottoms are often connected with lower levels of whale activity. In prior bottoms, the average number of transactions during a week was between 1,200 and 2,500.
Santiment reports that Bitcoin is still seeing about 10,000 daily transactions. This, according to Santiment, implies that they must wait for the average to decline lower before concluding that even the major players have given up.
Moving on, it’s important to think about potential volume gaps that BTC whales could be interested in. Santiment identifies $14,600 and $12,200 as two key price gaps that investors need to keep a watch on. Track the previously indicated group of whales to determine whether they are engaging in any major transactions in these price bands; this will provide light on whether or not whales are amassing there.
To summarize, it may be worthwhile to keep an eye on the behavior of Bitcoin whales as well as the existence of volume gaps around $14,600 and $12,200. Recent whale action may be summed up as a net selling, which has acted as a drag on the price.
Before determining with absolute certainty whether or not we have reached a bottom, it could be prudent to wait until the number of transactions has decreased, even more, the blockchain insights platform says.
Recent whale action may be summed up as a net selling, which has acted as a drag on the price. Before determining with absolute certainty whether or not we have reached a bottom, Santiment says it could be prudent to wait until the number of transactions has decreased even more.