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. Market watchers have indeed noticed this trend. However, key on-chain data suggests that Bitcoin whale accumulation and the reactivation of dormant wallets may be signs of a super price spike ahead.
Bitcoin Breaches $63,000: What It Means
Bitcoin has recently breached the $63,000 level, which has not gone unnoticed by market analysts. According to Coingecko, this surge signifies a strong movement within the cryptocurrency space, primarily driven by institutional investors and large-scale holders.
Institutional Inflows on the Rise
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. This 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.
Dormant Wallets Spring Back To Life
Another trend in recent 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. Additionally, a second wallet, unused for over a decade, contained 146 BTC, now worth $8.09 million. In 2013, this amount would have only sold for $80,257, representing an astonishing 9,985% rise.
Whale Accumulation Signals Long-Term Optimism
The accumulation pattern follows recent Bitcoin price rallies and fuels speculation that whales are waiting for prices to scale even higher. Ju’s analytical insights suggest that institutional investors retain faith in Bitcoin’s future, despite volatility since March 2024.
Technical Indicators Point to More Gains
Bitcoin is now trading at $63,570, according to TradingView. The price has risen from a September starting point of $58,909 to $63,637. Although it briefly fell to $53,940 on September 6, strong buying pressure from whales and institutions pushed the price up. The near-future crossover between the 50-day and 200-day Exponential Moving Averages indicates a positive trajectory. The Relative Strength Index (RSI) currently stands at 46.79, suggesting there is still room for the price to rise without the market becoming too extended.
Inactive Wallets Stir Market Volatility
Bitcoin’s price stabilization above the key 0.5 Fibonacci retracement level at $57,688.42 supports bullish sentiment. The activation of dormant wallets could also stir market volatility due to increased supply. Crypto asset management firm Ceffu recently transferred massive amounts of Bitcoin and Ethereum to Binance, generating speculation about long-term holders selling pressures.
As the cryptocurrency market continues to evolve, these trends in whale accumulation and dormant wallet reactivation may be key indicators of future Bitcoin price movements. Investors and market watchers should keep a close eye on these developments for potential opportunities.
