This article is available in Spanish.
Major investors appear to be increasing their bets; At least, that’s the story of Bitcoin and its latest recovery to over $63,000 Today. And market watchers have indeed noticed this. On the inside, however, there is important on-chain data that indicates the accumulation of Bitcoin whales and the reactivation of dormant wallets could be signs of a future super price spike.
Related reading
Ki Young Ju, founder of CryptoQuant, pointed to an increase in Bitcoin entering custodial wallets, which are typically used by institutional players for secure, long-term storage. Such a rise indicates that major players are positioning themselves to make what they believe could be another big price move.
Whales stack up #Bitcoin.
Six days of accumulation warnings in a row. Mainly due to the influx of custodial wallets.
Nothing has changed for Bitcoin; we are in the middle of the bull cycle. pic.twitter.com/DE0A1Khhus
— Ki Jonge Ju (@ki_young_ju) September 18, 2024
Dormant wallets come back to life
The trend of recent months has been the revival of dormant Bitcoin wallets. For example, 203 BTC worth $12.18 million were transferred from wallets that had been inactive for over a year to Binance, making a huge profit of $6.89 million.
The second wallet is gone Not used for over ten yearswith 146 BTC in it. That would total $8.09 million today. In 2013, it would have sold for just $80,257, which is an astonishing 9.985% increase.
The accumulation of whales signals long-term optimism
The accumulation pattern follows recent Bitcoin price increases and fuels speculation that whales are waiting for prices to rise even further. Ju’s analytical insights suggest that institutional investors are not losing confidence in Bitcoin’s future, even with the volatility since March 2024.
The price of bitcoin has risen from a September starting point of $58,909 to $59,530. Although the price briefly fell to a low of $53,940 on September 6, strong pressure from whales and institutions buying the oil pushed the price higher.
More profits expected: technical indicators
The price for Bitcoin to $63,637 has now shown impressive potential to move higher, supported by technical factors. The near future between the 50-day and 200-day exponential moving averages points to a more positive trajectory.
Furthermore, the RSI currently stands at 46.79, which is still not above the overbought value, meaning there is still plenty of room for the price to rise without the market becoming too expanded.
Related reading
Inactive portfolios cause market volatility
A stabilization in Bitcoin’s price above the key Fibonacci retracement level of 0.5 at $57,688.42 provides excellent support to bullish sentiment.
Activating dormant wallets could also fuel market volatility due to a response from increased supply. Crypto asset management firm Ceffu recently transferred massive amounts of Bitcoins and Ethereums to Binance, sparking speculation about selling pressure from long-term holders.
Featured image from Pexels, chart from TradingView
