Santiment predicts that uncertain market conditions will persist over the next 6 to 12 months. In the analysis, there is some disappointing news for Bitcoin bulls.
Analytical firm updates long-term Bitcoin forecasts
Santiment recently shared their updated analysis. Accordingly, the price of Bitcoin will continue to move sideways in the next 6 to 12 months. The crypto analytics platform bases this claim on recent whale activity, which it has cited as a key indicator of long-term price direction. According to Santiment, whales holding between 1 and 100,000 BTC continue to sell. We have seen this trend since November.
“Whales holding 1,000 to 100,000 BTC are a good indicator of long-term price direction,” Santiment writes. “By analyzing their behavior, we can try to figure out what might be hiding for the price. Lately, they seem to be net sellers and price does the same. We can confidently predict that BTC prices will be flat or even lower in the next 6-12 months.”
When will the bear market end?
Santiment is citing some data in line with the claim that Bitcoin will drop further. Accordingly, he says it is likely that Bitcoin has not yet established a price floor. The analytics platform comes to this conclusion by analyzing the number of whale transactions on a 7-day average. According to Santiment, on previous lows, this measurement is between 1,200 and 2,500 trades. However, he states that we are currently seeing around 10,000 transactions per day. As a result, the crypto analytics platform says we may have to wait for this metric to drop significantly to see a price floor form.
Also, Santiment highlights two price levels that are of significant concern to whales due to volume gaps. The first is the $14,600 price point. The second is the critical support level of $12,200. These are key prices to watch for whale accumulation, according to Santiment.
Investors are not interested in the current Bitcoin price
cryptocoin.comReferring to the IntoTheBlock data shared by Ali Martinez recently, we stated that whales and institutions are not interested in Bitcoin at current prices.
“Data from Intotheblock shows that the number of new addresses created on the BTC network is on a downward trend,” Martinez tweeted. He said that over the past seven days, this metric has decreased by 8.16%. This network activity shows that investors are not interested in buying BTC at current price levels. Bitcoin is trading around $16,500 at the time of writing. It has moved relatively horizontally over the last 24 hours. The leading cryptocurrency has been trading below $17,000 in recent months. All eyes are now on January and February.