- Bitcoin whale transactions have seen a major drop in recent times hinting at a lack of institutional interest in the crypto.
- For a sustained move to the north, the world’s largest cryptocurrency needs to surge past $17,000 levels.
The broader cryptocurrency market and the world’s largest cryptocurrency Bitcoin (BTC) have entered into a strong consolidation recently. Bitcoin is holding up over $16,600 levels currently and is facing strong resistance moving past $17,000.
While Bitcoin continues to struggle moving forward, some altcoins are making strong moves despite the current market conditions. On-chain data provider Santimenr reports that the lack of whale interest is one of the major reasons behind Bitcoin’s ranging prices. The data provider noted:
“Bitcoin’s ranging prices have a lot to do with declining whale interest. This chart illustrates how closely $BTC and $1M+ valued whale transactions correlate. If prices continue sliding and a spike occurs, this would be a historically #bullish signal”.
Courtesy: Santiment
Along with the missing Bitcoin whales with $1 million in transaction value, the whales contributing transactions worth $100,000 are also missing in action. The number of transactions on the BTC network with a value of $100,000 has touched a new yearly low of just 8040 transactions. This shows that the institutional interest in Bitcoin has been clearly on a decline.
Some market analysts believe that the lack of institutional participation could also be due to uncertain macro conditions. Many market state that if the U.S. were to fall into recession next year in 2023, we can see BTC price correcting further from here onwards. If the BTC price drops under $16,000, the next support level stands at $13,800.
Where is Bitcoin Heading Next?
The current inactivity in the Bitcoin price has got investors confused as to where shall be Bitcoin heading next. On the other hand, the Bitcoin network activity has been in a sharp decline. Citing data from IntoTheBlock, crypto analyst Ali Martinez noted:
Data from @intotheblock shows the number of new addresses created on the $BTC network has been trending down. It has decreased by 8.16% in the past seven days. This network activity suggests that investors aren’t interested in buying #BTC at the current price levels.
Courtesy: IntoTheBlock
The BTC price has currently turned range bound between $16,600 and $17,000 levels. Crypto analyst Ali explains: “Bitcoin sits between two significant supply walls. One at $16,600 where 1.46 million addresses hold 915K #BTC and the other one at $17,000 where 1.27 million addresses hold 730K $BTC. A sustained move outside of this area will likely determine the direction of the trend”.
Although the BTC price has corrected by nearly 60% this year, the Bitcoin blockchain network continues to hit a few new milestones. Crypto analyst Will Clemente explained:
This year Bitcoin crossed over $100 trillion in cumulative transfer volume, with roughly $105 trillion having been settled on the network in total. This is a tremendous feat, illustrating how millions around the world have utilized Bitcoin as a global settlement network.
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