The impact of bitcoin whales and their activities is always felt in the general market. This goes from buying to selling, and it’s the only way they move coins. Once again, this whale is still in the market and its activity can signal the bottom.
Santiment Says Bitcoin Whale Is Selling
In a recent community post on Santiment’s website, whale activity is analyzed in depth. This time, look at the balance of the large holders show that they are still selling. This whale who holds between 1,000 and 10,000 BTC has reduced his holdings from almost 8 million BTC in December 2021 to less than 7 million BTC in December 2022.
Even in the last few months, he has reduced his balance by more than 200,000 BTC, showing that he is still selling. Due to this selling trend among these large holders, the report predicts that the market will see a “tilt or even lower for BTC in the next 6-12 months.”
BTC whales are still selling | Source: Santiment
If the sale of this large investor lasts until 2023, then the digital asset will start the year at a price below $16,000. It is also important to note that the analysis in the whale address report shows that the bottom of the market may not have been reached yet.
BTC Bottom Still Not In
Now, whale activity is important to watch because the accumulation of whales can lead to mass gatherings, and vice versa. One way to try to determine the fundamentals of bitcoin is by whale activity. At or near the bottom of a bear market, the whale’s address activity has historically declined.
However, the Santiment report notes that the average number of 7-day transactions is still around 10,000 today. Compared to the previous bear market when the market has marked the bottom, the number of whale transactions has decreased to 1,200 and 2,500.
“This may mean we have to wait for the average to drop further before we can conclude that the big players have given up,” the report said.
BTC price succumbs to selling pressure | Source: BTCUSD on TradingView.com
Another metric the report shows is the volume gap. This usually shows where the whales are congregating and unfortunately, the two volume gaps identified in the report are below the current bitcoin trading price. The two key gaps identified are the $14,600 and $12,200 price levels, which could be whale accumulation levels.
Essentially, the advice is to delay buying until the whale deals subside, as well as wait for the current selling pressure to subside. “To summarize, BTC’s whale activity and the existence of a volume gap at 14,600 USD and 12,200 USD may be worth watching,” Santiment said.
Option image from Crypto Insiders, chart from TradingView.com