Bitcoin price has been hovering below the crucial resistance level at $17,000 for the past few days amid low volatility rates in the market. The world’s largest digital asset has declined by almost 2% in the past week. The total volume of BTC traded in the past 24 hours has dipped by nearly 3%.
Bitcoin is Under Pressure
Bitcoin price took a step back earlier on Tuesday as the US equity markets dropped again and initiated a losing streak. The US Housing Price Index hints at a steep decline in the value of houses across the United States. The US Treasury received an outsized number of bids for its 2-year bond auction.]
Traders have been migrating into bonds for safety in the last week of this year. Bitcoin whale transactions over December show that whale interest in the digital asset has been falling. Large volume transactions valued at $1 million or higher have hit a historical low in the past month as whale interest in the largest cryptocurrency plunges.
Bitcoin network’s large wallet investors and their activities have largely influenced the asset’s price performance. According to data from crypto intelligence tracker Santiment, Bitcoin’s ranging prices overlapped with declining whale interest. This shows a lack of interest in both buying and selling from large investors.
As such, the lack of activity from the Bitcoin whales is neither bullish nor bearish. As a result, the Bitcoin price is range-bound between $16,500 and $16,800. However, if the BTC price continues sliding, a spike in whale transactions could be a bullish signal for the digital currency.
Bitcoin Price Outlook
The 3-hour chart shows that the Bitcoin price has been on a bear run for the past few days. It has managed to move below the 25-day and 50-day moving averages. It is also trading below the 100 hourly simple moving average. Its Relative Strength Index is below neutral at 37.
An accumulation trend of BTC by large whales could trigger a bullish run for the digital asset. If this happens, Bitcoin could jump 10% to the key resistance at $20,000. However, a continued bear run would increase selling pressure on BTC tanking its price further past the crucial support at $16,000.