Bitcoin Could See Another Bull Rally If It Happens

[ad_1]

Bitcoin is still strangling at the $16,000 price level with no significant upward or downward movement. This is normal given the historically low volatility rates recorded in the market. However, there could be some good rallies in the near future for the digital asset, but that depends on what BTC whales do.

Bitcoin whales are 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 the low price ranges of BTC during this period, and with so little movement, it becomes more difficult to make a profit.

These whale trades carrying $1 million and above have seen a decline lately. This shows a lack of interest in both buying and selling from these large investors. As a result, bitcoin price continued to stagnate between $16,600 and $16,800. Essentially, this lack of big BTC whale activity is neither bullish nor bearish. The next trend, however, will be decided from what these large holders decide to do from here.

BTC whale interest wanes during crypto winter | Source: Santiment

As this Santiment chart shows, a decline in interest in whales has generally coincided with periods of low prices. However, should there be a large build-up from these large holders, the price of bitcoin will begin another bullish rally.

Given that whale trades carrying at least $1 million are at a 2-year low, this is a prime setup for at least a short-term rally. If 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 large whales would trigger a historically 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 sparked the rally that saw bitcoin reach its all-time high price of $69,000.

BTC price falls below $16,700 | Source: BTCUSD on TradingView.com

This time around, with the price of BTC so low, such a trend would lead to at least a 10% increase in the price of the digital asset. From there, a 10% increase would mean that bitcoin once again breaks above the $20,000 level, although a lot of resistance from the bears is expected at such levels.

However, on the other hand, a continued decline will increase the selling pressure on BTC from here. This would once again signify a reversal towards the $15,000 level. Now it becomes a waiting game to see what happens first.

The price of BTC was $16,684 at the time of this writing.

Featured image from GoBankingRates, chart from TradingView.com

[ad_2]