Large investors seem to be upping their ante; at least, that’s the story of Bitcoin and its latest rebound to over $63,000 today. And market watchers have indeed taken notice. On the inside, however, is key on-chain data that suggests Bitcoin whale accumulation and the reactivation of dormant wallets may be signs for a super price spike ahead.
Bitcoin breaching the $63k level today. Source: Coingecko
Ki Young Ju, founder of CryptoQuant, pointed to a rise in Bitcoin flowing into custody wallets, typically used by institutional players for safe, long-term storage. Such an increase indicates that big players position themselves to make what they believe could be another major price move.
Whales are accumulating #Bitcoin.
Six days of accumulation alerts in a row. Primarily from custody wallet inflows.
Nothing has changed for Bitcoin; we’re in the middle of the bull cycle. pic.twitter.com/DE0A1Khhus
— Ki Young Ju (@ki_young_ju) September 18, 2024
Dormant Wallets Spring Back To Life
The trend in past months has been the revival of dormant Bitcoin wallets. For instance, 203 BTC, valued at $12.18 million, were transferred from wallets that were inactive for more than a year to Binance, earning a whale $6.89 million in profit.
Source: Lookonchain
The second wallet has been unused for over a decade, with 146 BTC inside. That would total to $8.09 million today. In 2013, it would have only sold for $80,257, which is an astonishing 9,985% rise.
Whale Accumulation Signals Long-Term Optimism
The accumulation pattern follows the recent Bitcoin price rallies and fuels speculations that whales are waiting for the prices to scale even higher. Ju’s analytical insights raise the notion that institutional investors are not losing faith in Bitcoin’s future even with the volatility since March 2024.
Bitcoin is now trading at $63,570. Chart: TradingView
The price of bitcoin has risen from a starting point in September at $58,909 to $59,530. Although it did fall briefly on Sept. 6 to the lowest level at $53,940, the strong pressure of whales and institutions buying it pushed the price up.
More Gains Expected: Technical Indicators
The price for Bitcoin to $63,637 has now indicated impressive potential to push upwards, backed by the technical factors. The near future crossover between the 50-day and the 200-day Exponential Moving Averages point to a more positive trajectory.
Also, the RSI currently stands at 46.79, which is still not over the overbought value, meaning that there is a good amount of room left for the price to rise without the market getting too extended.
Inactive Wallets Stir Market Volatility
A stabilization of Bitcoin’s price above the key 0.5 Fibonacci retracement level at $57,688.42 gives excellent support to the bullish sentiment.
Activation of dormant wallets could also stir the market’s volatility due to a reaction from the increased supply. Crypto asset management firm Ceffu transferred massive Bitcoins and Ethereums to Binance recently, generating speculations about long-term holders selling pressures.
Featured image from Pexels, chart from TradingView
Christian Encila
They say journalists never truly clock out. But for Christian, that’s not just a metaphor, it’s a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.
Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).
Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!
So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).
Think Christian’s all work and no play? Not a chance! When he’s not at his computer, you’ll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.
Speaking of chill, Christian’s got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.
Here’s the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day – and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.
Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors – and bosses – he deeply respects.
So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.
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