- 31,968 Bitcoins that were dormant for 3 to 5 years were suddenly moved
- Historically, big transfers from Bitcoin wallets that have been inactive for a while have often preceded major price reversals, corrections, or the start of sustained bull runs
- Bitcoin pulled back from recent highs, dropping about 7.5% since its all-time record several days ago
A notable on-chain event happened today, when 31,968 Bitcoins that were dormant for 3 to 5 years were suddenly moved. With Bitcoin’s current price hovering at around $115.5k, this translates to roughly $3.7 billion.
This is noteworthy because the reactivation of dormant Bitcoin wallets can serve as an early indicator of a market shift. Historically, big transfers from Bitcoin wallets that have been inactive for a while have often preceded major price reversals, corrections, or the start of sustained bull runs.
In other words, these transactions could indicate a period of accumulation by new buyers, which typically precedes a price rally. It might also signal distribution, suggesting caution from long-term holders ahead of a potential correction.
Even if some of the coins are sold privately to avoid affecting the market, moving almost 32,000 Bitcoin at once is still a huge deal.
Bitcoin’s past may signal its future
Bitcoin pulled back from recent highs, dropping about 7.5% since its all-time record several days ago. Some analysts like Lark Davis suggest a deeper correction toward $108k-$112k might be on the horizon. He also pointed out that this warning is backed by trading indicators that show the market might have gotten too hot, too fast.
Another technical pattern, a rising wedge breakdown, points to a potential drop toward $88k, if we’re to look at historic trends. Moreover, Bitcoin dominance is slowly dropping compared to last month, sitting currently at 58.9%, which is a sign that other cryptocurrencies are gaining traction.
Related: Bitcoin Price Analysis: Key Targets to Consider Amid High-Impact News
Speaking of history, Bitcoin tends to finish strong in the final quarter, and if this pattern holds, investors could see gains yet again.
Compared to the last year, Bitcoin rose in value by approximately 32%, with the overall crypto market surpassing $4.18 trillion. However, analysts at 10x Research point out that August has traditionally been a weak month for Bitcoin, where its value usually drops by 5% to 20%.
Nevertheless, the dormant transfer of almost 32,000 Bitcoin might shake things up, especially if key support levels hold and macro data swings optimistically.
Related: Understanding Bitcoin ETFs: A Simple Guide to Spot and Futures
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