Bitcoin whale activity signals possibility of a historic bull run in BTC if this occurs
- Bitcoin price drifted lower on Tuesday as whale interest in BTC declined.
- Whale transactions worth $1 million in Bitcoin have hit the lowest network levels since December 2020.
- If BTC price continues sliding lower, a spike in transactions by large wallet investors could signal a massive bull run in the asset.
Bitcoin price continued its decline for the seventh day in a row. Large volume transactions, valued $1 million or higher have hit a historical low as whale interest in BTC deteriorates. If BTC price continues sliding a spike in whale transactions could be a historically bullish signal for the asset.
Also read: Binance CEO Changpeng Zhao believes external factors are driving fear among BNB holders
Bitcoin whale activity could signal a bull run on one condition
Bitcoin network’s large wallet investors and their activities have typically influenced the asset’s price. Based on data from crypto intelligence tracker Santiment, BTC’s ranging prices overlapped with declining whale interest.
In the chart below, there is a correlation between Bitcoin price and transactions worth $1 million or higher. Analysts at Santiment believe if BTC price continues to slide and whale transactions spike, it would be a historic bullish signal for the largest asset by market capitalization.
Bitcoin whale transactions worth $1 million hit lowest point since Dec 2020
Despite BTC’s steep price drop, holders are nursing their losses. The largest asset by market capitalization recently experienced historically low volatility
Bitcoin hodlers are sitting on a record 8 million BTC in unrealized losses. Data from on-chain analytics firm Glassnode shows that both short-term and long-term holders are sitting on more unrealized losses than ever before.
Bitcoin: Long and Short-term holders in loss
This marks an important milestone in Bitcoin’s price trend in the ongoing bear market. Whale activity and large volume transactions could trigger a breakout in the digital currency, as experts anticipate a BTC rally.
Bitcoin could find its bear market bottom in January 2023
RektCapital, a crypto analyst and trader evaluated Bitcoin’s recent Relative Strength Index (RSI). The momentum indicator is used to identify potential trend reversals in the asset. Bitcoin RSI recently entered the oversold zone, a sign that has historically preceded a reversal and recovery with outsized Returns On Investment for long-term investors.
The past reversals from this area include the BTC price rally in January 2015, December 2018 and March 2020 – basically all bear market bottoms. The expert argues that the number one cryptocurrency by market cap is currently searching for its first bottom to build macro bullish divergence.
BTC/USD price chart
The technical analyst believes BTC could hit its cycle bottom by January 2023, and start climbing higher, prior to the next Bitcoin halving.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
