Bitcoin whale activity is signaling the possibility of a historic bull run in BTC if it materializes

• Bitcoin price fell on Tuesday as whale interest in BTC waned.
• $1 million worth of Bitcoin whale transactions hit lowest network levels since December 2020.
• If BTC price continues to fall lower, a surge in transactions from large wallet investors could signal a massive bull run for the asset.

Bitcoin price continued its decline for the seventh straight day. Large-scale transactions worth $1 million or more have hit an all-time low as whale interest in BTC wanes. If BTC price continues to decline, an increase in whale transactions could be a historically bullish signal for the asset.

Also read: Binance CEO Changpeng Zhao believes external factors are driving BNB holders’ fears

Bitcoin whale activity could signal a bull run on one condition

The Bitcoin network’s major wallet investors and their activities have typically impacted the price of the asset. Based on data from crypto intelligence tracker Santiment, BTC’s price ranges intersected as whale interest waned.

In the chart below, there is a correlation between the Bitcoin price and transactions worth $1 million or more. Analysts at Santiment believe that a further decline in BTC price and a spike in whale transactions would be a historic bullish signal for the largest asset by market cap.

$1 million in Bitcoin whale transactions hit lowest level since December 2020

Despite BTC’s sharp price drop, holders are nursing their losses. The largest asset by market cap has recently seen historically low volatility

Bitcoin hodlers are sitting on a record 8 million BTC in unrealized losses. Data from on-chain analytics firm Glassnode shows that both short-term and long-term holders are sitting on more unrealized losses than ever before.

Bitcoin: Long and short-term holders at a loss

This marks an important milestone in Bitcoin’s price action in the ongoing bear market. Whale activity and large-volume transactions could spark a breakout in the digital currency as experts anticipate a BTC rally.

Bitcoin could find its bear market bottom in January 2023

RektCapital, a crypto analyst and trader, has rated Bitcoin’s recent Relative Strength Index (RSI). The momentum indicator is used to identify potential trend reversals in the asset. Bitcoin RSI recently entered the oversold zone, a sign that has historically preceded a reversal and rally with outsized returns for long-term investors.

Past reversals from this area include the BTC price rally in January 2015, December 2018, and March 2020 – basically all bear market bottoms. The expert argues that the number one cryptocurrency by market cap is currently looking for its first bottom to build macro-bullish divergence.

BTC/USD price chart

The technical analyst believes BTC could hit its cycle bottom by January 2023 and surge higher ahead of the next Bitcoin halving.

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