Bitcoin investors brace for a potential sell-off.
Crypto analyst and verified CryptoQuant author Maartunn (@JA_Maartun) has disclosed that a previously dormant Bitcoin address has moved 4000 BTC 2 to 3 years old.
While the intent of the unknown entity is unclear, as highlighted by CryptoQuant chief Ki Young Ju in August, the movement of old Bitcoin is usually a bearish signal.
A dormant Bitcoin wallet awakened ?
4,000 #BTC from 2y ~ 3y old has moved onchain. pic.twitter.com/uM6A9vzfUB
— Maartunn (@JA_Maartun) January 5, 2023
Recall that per a report from The Crypto Basic today, the analyst has warned of an impending market crash as altcoin trading dominance is at 50%. It has often preceded market crashes in the past, as highlighted by Maartunn. Notably, it was the case at the beginning of November, just before the FTX-induced market collapse.
The analyst corroborated his analysis by sharing a different analysis from Material Scientist (@Mtrl_Scientist), which showed a spike in market optimism that historically precedes price drops.
“bear is here,” Material Scientist asserted.
Notably, Santiment Feed echoed the same sentiments in a tweet today. According to the crypto analytics platform, the latest altcoin rally has led to widespread bullish sentiment on social media. However, the firm opined that it is a reason for investors to tread carefully.
? This week's modest #crypto rally, particularly for #altcoins, has led to a spike in social media mentions of terms like #buy, #buying, #bottom, & #bullish. Historically, these positive terms are signs of euphoria & #FOMO. Tread carefully at this spot. https://t.co/QpQ6j5TviT pic.twitter.com/nxq0FYPbp0
— Santiment (@santimentfeed) January 5, 2023
Recall that Bitcoin stock-to-flow model creator PlanB yesterday claimed that Bitcoin is “weak,” sharing a relative strength index chart with a rating of 40.
Bitcoin is exchanging hands for $16,829.99 at press time, down 0.07% in the last 24 hours after 3 days of consecutive gains.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
