Dormant BTC Wallets Making Historic Moves; Will This Impact Bitcoin Price?
Bitcoin, the largest cryptocurrency by market capitalization, recently witnessed its largest surge in dormant tokens being traded in over two years. This significant uptick in activity involves Bitcoin tokens that have not been moved for an extended period suddenly changing hands, which analysts believe could soon be a precursor to increased price volatility.
Crypto analyst Ali pointed out in a new tweet that Bitcoin has just witnessed its biggest surge in dormant BTC tokens changing hands in more than two years.
Historically, such movements have been associated with large holders or “whales,” who hold large amounts of Bitcoin and can influence market dynamics due to the size of their transactions.
The surge in dormant BTC tokens changing hands might significantly affect Bitcoin’s price. Historically, increased activity among dormant tokens has often preceded periods of heightened price volatility in cryptocurrency markets.
According to Ali, the increased surge in dormant BTC tokens being traded might signal a potential increase in price volatility ahead. The rationale is that large, sudden transactions can lead to a domino effect, impacting the supply-demand equilibrium and, consequently, the price.
In a separate tweet, Ali reported that over 25,000 Bitcoins, worth about $1.60 billion, were moved to accumulation addresses, the greatest influx to these BTC wallets this year and indicating increased whale activity.
Bitcoin (BTC) fell to a low of $60,771 in the last week and is now trading at $64,809, with market observers expecting further volatility in the short term. Bitcoin has increased by roughly 128% year on year, while it is down 12.2% from its all-time high of $73,798 set on March 14.
According to Ali, critical Bitcoin support levels to watch include $61,100, $56,685 and $51,530. On the other hand, significant resistance points for BTC are $66,990 and $72,880.
