Wednesday 25 May 2022
Home / Altcoin / Bitcoin ‘dormant’ for 7+ years moved right before BTC price dropped 5%

Bitcoin ‘dormant’ for 7+ years moved right before BTC price dropped 5%

Bitcoin (BTC) dived $3,000 into the morning of April 1 as a widely-predicted pullback seemed to accompany fresh moves by major investors.

As revealed by the Whale Shadows indicator, over 11,000 BTC suddenly left its wallet on March 29, having previously sat there for most of a decade.

Dormant coins echo December 2017

Whale Shadows, coined by analyst Philip Swift, tracks coins that become active again after spending a considerable amount of time out of circulation.

Tuned to only record when 100 BTC or more leave their long-term wallet, spikes in the metric have previously coincided with what Swift argues are “major highs” in price.

“There was a significant movement on-chain yesterday, with +10k BTC that has not moved for the past 7-10yrs finally moving,” he noted on March 31.

The spike in that age band, described as involving 7-9 year dormant coins on Swift‘s analytics site, LookIntoBitcoin, is one of the two largest ever in Bitcoin‘s history.

The only other time that old coins moved on such a scale was in December 2017 when BTC/USD hit an all-time high that would remain unbeaten for three years.

Bitcoin Whale Shadows chart. Source: LookIntoBitcoin

Discussing the data on Twitter, however, opinions varied considerably over the significance of the latest event.

Swift argued that the funds involved were likely tied to a 2014 hack of cryptocurrency exchange Cryptsy, while others disagreed.

Popular user Nunya Bizniz further noted that the spike had occurred after Bitcoin‘s comedown from its latest $69,000 all-time highs, not before.

Bitcoin fails to escape the Ides of March

As Cointelegraph previously reported, appetites were keen for Bitcoin to retrace after reaching its highest levels of 2022, gaining as much as 29.4% between its March lows and highs.

Related: Bitcoin just regained a key price trendline after its longest absence since March 2020

Fellow popular trader Pentoshi nonetheless still entertained the potential for a trip over $50,000 next.

For Crypto Ed, however, the outlook was less rosy. Having failed to hold its support zone of around $45,000, in addition to the $46,200 yearly open, Bitcoin now faced a deeper retracement and reentry back into its established trading range.

Previously, whales on exchange Bitfinex had caught the market‘s attention with a sell wall near current spot prices, one which bulls nonetheless managed to overcome temporarily.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.

About Sean Patterson

Check Also

WEF 2022: Ripple CEO reveals he visited SEC several times before lawsuit struck

Brad Garlinghouse, the CEO of cross-border payments company Ripple, spoke during a panel discussion Monday at the World Economic Forum in Davos, Switzerland. Garlinghouse, who also occupies a role as a member of the company’s board of directors, commented on a wide range of topics, most notably the current status of regulation in the United States versus G20 nations. Ripple CEO Brad Garlinghouse. Source: CointelegraphEmphasising the prudent necessity for regulatory frameworks which serve integral principles of “clarity and certainty", Garlinghouse stated his belief that: “The overwhelming majority of people working within the crypto industry are good actors that want to do right by regulators. But when the rules of the road aren’t clear, it’s very difficult to manage within that.”Later in the conversation, Garlinghouse revealed that he personally went to the U.S. Securities and Exchange Commission (SEC) office "four or five times in the years leading up to their decision to file a law..

Leave a Reply

Your email address will not be published. Required fields are marked *