Disappointing news for bulls as Santiment predicts ranging or bearish market conditions will endure for the next 6 to 12 months.
Bitcoin’s price will continue to range or trade even lower in the next 6 to 12 months, according to a community post by Santiment yesterday.
The crypto analytics platform makes this claim based on recent whale activity, which Santiment touts as an essential indicator of long-term price direction. According to Santiment, whales holding 1k to 100k BTC have remained net sellers.
“The group of BTC holders who own between 1,000 and 100,000 BTC is known for being a good indicator of long-term price direction,” Santiment writes. “By analyzing their behavior, we can try to understand what might be in store for the price. Recently, it looks like they’ve been net sellers, and the price has been following suit. It is with confidence that we can predict a sideways or even lower prices for BTC in the next 6-12 months.“
Wen Price Bottom?
In line with the assertion that the asset could trade lower, Santiment, in the same post, says it is likely that Bitcoin is yet to form a price bottom.
The crypto analytics platform arrives at this conclusion by analyzing the number of whale transactions on a 7-day average. According to Santiment, at previous bottoms, this metric sits between 1,200 and 2,500 transactions. However, it notes that we are currently seeing about 10,000 transactions daily. Consequently, the crypto analytics platform says we might have to wait till this metric significantly declines to see a price bottom formed.
Furthermore, Santiment highlights two price levels of significant interest to whales due to volume gaps. The first is the $14,600 price point, and the second is $12,200. According to Santiment, these are key prices to watch for whale accumulation.
Recall that The Crypto Basic recently reported that whales and institutions are not interested in Bitcoin at current prices, citing IntoTheBlock data shared by Ali Martinez.
At press time, the asset exchanges hands for $16,486.63, down 0.47% in the last 24 hours.