Bitcoin soared above the $64,000 threshold today, setting a momentous achievement in its current run-up.The resurgence in Bitcoin’s price was accompanied by a noteworthy event – the activation of a dormant wallet containing 687 BTC, valued at over $43 million as per Whale Alert data. This dormant Bitcoin whale, inactive for over a decade, made two substantial transfers to unknown wallets on Monday, totaling nearly $44 million.
💤 💤 💤 💤 💤 A dormant address containing 687 #BTC (43,893,168 USD) has just been activated after 10.3 years!https://t.co/l31uAyadYZ
— Whale Alert (@whale_alert) May 6, 2024
As per Lookonchain, an onchain analytic firm, the first transaction involved the transfer of 625.42 BTC, amounting to a $41 million. The second transfer moved 61.9 BTC, equivalent to approximately $4 million at the time.
The dormant whale acquired this substantial sum of Bitcoin on January 12, 2014, when the cryptocurrency was valued at $917 per coin. The dormant whale’s BTC reserve, initially worth $630,000, has now soared to approximately $43.94 million.
A wallet that has been dormant for 10.3 years transferred all 687.33 $BTC($43.94M) out 10 mins ago.
The whale received 687.33 $BTC($630K at that time) on Jan 12, 2014, when the price was $917.
Address: 15WZNLACuvcDrrBL2btDErJggnaMQtHh5G pic.twitter.com/tEPqM0CrrK
— Lookonchain (@lookonchain) May 6, 2024
However, this sudden transfer has raised concerns among investors regarding a potential selloff. The significant profit realized by the dormant whale strengthens the possibility of a dump, which could adversely affect Bitcoin’s price amidst its ongoing recovery. A selloff of such magnitude could potentially trigger a decline or sideways movement in the market, providing an opportunity for Bitcoin bears to capitalize on.
Bitcoin/USD 1-Day price chart, Source: Trading view
Despite Bitcoin’s successful rebound past $64,000, traders remain cautious as indicators suggest a potential reversal in the near future. The one-day stochastic RSI trading above the signal line indicates that Bitcoin is currently overbought, signaling a possible downturn.
Moreover, the one-day MACD trading above the signal line suggests strong bearish momentum in the short term, with potential for further downward movement. Traders are advised to monitor for a crossover below the signal line, which could indicate a trend reversal.
Additionally, the one-day ADX reading of 25.52 suggests moderate trend strength in the asset, but may not be robust enough to sustain significant price movement. Furthermore, shorts accounted for nearly 95% of total liquidations, according to Coinglass, although the impact of the short squeeze may be limited compared to recent days.
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