Bitcoin Whale Activity on a Major Decline, Another BTC Drop Ahead?

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The world’s largest cryptocurrency, Bitcoin (BTC), has faced heavy selling pressure and currently holds less than $17,000. Another major development is that whale interest in Bitcoin has waned, which could be a sign of concern going forward.

Transactions worth $1 million worth of Bitcoin hit a two-year low and whales showed very little interest in dumping or hoarding Bitcoin. On-chain data provider Santiment noted:

Bitcoin’s fluctuating prices have a lot to do with declining interest in whales. This chart illustrates how closely correlated whale trades valued at $BTC and $1M+ are. If prices continue to fall and a peak occurs, that would be a historically #bullish signal.

Courtesy: Santiment

This scenario is true not only for large whales but also for medium-sized whales. The total number of large transactions on the BTC network worth more than $100,000 just hit a new annual low of 8,040 transactions. It nicely reflects the low whale and institutional activity on the BTC network.

Weak Investor Interest in Buying Bitcoin

Along with whale activity, other on-chain data shows that investor interest in buying BTC has also waned. Citing data from IntoTheBlock, crypto analyst Ali Martinez reported:

“Data from @intotheblock shows that the number of new addresses created on the $BTC network is trending down. It has fallen by 8.16% over the past seven days. This network activity suggests investors are not interested in buying #BTC at current price levels.”

Courtesy: IntoTheBlock

Bitcoin price volatility has hit a new all-time low and so it has been difficult to predict which way BTC price will move. Crypto analyst Ali Martinez explains, “Bitcoin sits between two significant supply walls. One at $16,600 where 1.46 million addresses hold 915,000 BTC and the other at $17,000 where 1.27 million addresses hold $730,000 BTC. Sustained movement outside of this zone will likely determine the direction of the trend.”

Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrency. He is continually in a learning process and motivates himself by sharing his acquired knowledge. In his spare time, he reads thrillers and occasionally explores his cooking skills.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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