This may still not be enough to cap the bear market, various analysts have warned; and now, order book data appears to underscore the potential for fresh losses.
“Nothing illustrates sentiment for a price level like liquidity, and there does not appear to be much sentiment for this price level being the bottom,” Material Indicators commented on a chart of BTC/USD order book activity on Binance.
On Dec. 27, another post argued that there was not “much to be excited about” given current order book volumes, these also showing large-volume traders reducing exposure.
“BTC ranging prices have a lot to do with declining whale interest,” research firm Santiment continued on the topic.
Another chart highlighted what Santiment said was a “correlation” between large transactions of $1 million or more and overall BTC price strength. Those transactions are now at their lowest levels since December 2020.
“If prices continue sliding and a spike occurs, this would be a historically bullish signal,” it added.
“Lower BTC prices to come”
In its “Just Crypto” end-of-year summary and forecast, meanwhile, trading firm QCP Capital had more bad news for crypto hodlers.