Bitcoin Prize should consolidate or trace even further back in 2023: Analysis

Bitcoin Prize should consolidate or trace even further back in 2023: Analysis

The price of Bitcoin suffered a massive slump in 2022 and fell by more than 50 %in 12 months. However, the Santiment crypto analysis platform believes that there will be further bad news in the new year.

The company based its rather declining forecast on the activity of the BTC whales.

BTC whales are net buyers

Santiment began his predictive analysis for 2023 by emphasizing the importance of the behavior of the BTC whales for the price movements of the asset. This is to be expected, since these types of investors - who have between 1,000 and 100,000 BTC in a single wallet - could have a greater influence if they decide to sell or buy in large quantities.

You were pretty active on the buying front during the bull market in 2021, but most have changed their strategy in the completely different environment of 2022. The analysis sare tour confirmed this and claimed that Bitcoin whales have recently become "net buyers", "and that was the price."

"With confidence we can predict sideways movements or even lower prices for BTC for the next 6-12 months." - said Santiment.

The stocks of the Bitcoin whale. Santiment

The analysis added that BTC floors are typically found when the activity of the whales has decreased considerably. However, this is currently not the case, since there are currently over 10,000 transactions from such investors daily, while the number has dropped to 1,200 to 2,500 during earlier lows.

"This can mean that we have to wait until the average continues to drop before we can come to the conclusion that even the big ones give up."

Santiment predicted that a drop in price is not excluded up to $ 12,200, since there could be two remarkable volume gaps between this level and $ 14,600.

small investors differ

There is a big difference between what the retail and the whales did during earlier bear cycles, and it. In the past, the former were slightly afraid and sold their bags while the latter made a rush of accumulation.

The Bärenmarkt 2022 has seen a completely different landscape. As mentioned above, whales sold their assets, while private investors (who held between 0.1 and 10 BTC) have been sold and actually bought further.

This achieved their accumulated stocks in mid-October an all-time high of 15.9 % of the total available bitcoin offer cryptopotato registered at the time.

.