Big investors seem to be increasing their stake; at least, that’s the story of Bitcoin and its latest recovery to over $63,000 today. And market watchers have indeed taken notice. Inside, however, is key on-chain data that suggests that Bitcoin whale accumulation and the reactivation of dormant wallets could be signs of a price super-surge ahead.
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Ki Young Ju, founder of CryptoQuant, pointed to an increase in Bitcoin flows into custodial wallets, typically used by institutional players for safe, long-term storage. Such an increase indicates that big players are positioning themselves to make what they believe could be another major price move.
The whales are piling up #Bitcoin.
Six consecutive days of accumulation alerts. Mostly from custodial portfolio flows.
Nothing has changed for Bitcoin; we are in the middle of the bull cycle. pic.twitter.com/DE0A1Khhus
-Ki Young Ju (@ki_young_ju) September 18, 2024
Inactive wallets come back to life
The trend in recent months has been the revival of dormant Bitcoin wallets. For example, 203 BTC, valued at $12.18 million, were transferred from wallets that had been dormant for over a year to Binance, generating a profit of $6.89 million.
The second wallet was unused for over a decadewith 146 BTC inside. That would total $8.09 million today. In 2013, it would have sold for just $80,257, which represents an astonishing increase of 9,985%.
Whale accumulation signals long-term optimism
The accumulation pattern follows recent Bitcoin price rallies and fuels speculation that whales are waiting for prices to rise further. 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’s price rose from $58,909 to $59,530 in September. Although it briefly dipped to a low of $53,940 on September 6, strong pressure from whales and institutions buying it pushed the price higher.
More gains expected: technical indicators
The price for Bitcoin to $63,637 has now indicated impressive potential for momentum, supported by technical factors. The near-term crossover between the 50-day and 200-day exponential moving averages points to a more positive trajectory.
Furthermore, the RSI is currently at 46.79, which is still not above the overbought level, meaning that there is still plenty of room for the price to move higher without the market becoming too overextended.
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Inactive portfolios drive market volatility
A stabilization of Bitcoin price above the key 0.5 Fibonacci retracement level at $57,688.42 provides excellent support for bullish sentiment.
The activation of dormant wallets could also stir market volatility due to a backlash from increased supply. Crypto asset management firm Ceffu recently transferred huge amounts of Bitcoin and Ethereum to Binance, sparking speculation about selling pressure from long-term holders.
Featured image from Pexels, chart from TradingView