Bitcoin experienced notable price movements early this week, with an impressive rally pushing the crypto above $58,000.
Following a brief dip earlier in the day, Bitcoin’s value climbed in the evening, hitting a 5-day high. This surge coincided with active selling by short-term holders, as on-chain data reveals substantial movements of Bitcoin tokens.
Short-term Holders Take Advantage
According to recent data, short-term Bitcoin holders seized the opportunity to sell during the recent price increase. Approximately 14,816 BTC, valued at close to $850 million, was sold by these holders, per a disclosure from market watcher Ali Martinez.
Short-term #Bitcoin holders seized the recent price jump to offload approximately 14,816 $BTC, valued at nearly $850 million! pic.twitter.com/hiy37Gxz6X
— Ali (@ali_charts) September 10, 2024
This selling behavior aligns with a noticeable upward price movement, with Bitcoin rising from $54,000 to $57,500 between September 8 and 10. Notably, two price spikes occurred—first on September 9, followed by a larger increase on September 10.
There are three key moments where significant amounts of Bitcoin aged 1-3 months were moved. The first spike was observed on September 8, with spent outputs reaching a level above 2,000 BTC. The second, larger spike occurred on September 9, peaking at over 4,000 BTC. The final peak was seen on recently, when the spent outputs surpassed 14,000 BTC.
Decline in Large Bitcoin Wallets
While Bitcoin’s price surged, data from the blockchain indicates a reduction in the number of large wallets in the past month.
Addresses holding between $10,000 and $100,000 in Bitcoin decreased by 3.39%, while wallets holding between $1 million and $10 million dropped by 2.83%. This reduction may reflect profit-taking by wealthier investors or institutional players.
The decline in large wallet addresses could be tied to profit-taking, signaling caution among wealthier investors.
Traders Show Skepticism Despite Rally
Despite Bitcoin’s latest strong performance, some traders remain cautious about the longevity of the rally. Data from major exchanges like Binance and BitMEX indicate that a number of traders began shorting Bitcoin as the price neared its peak.
Santiment analysis suggests that many traders took bearish positions, expecting the price increase to be short-lived. However, while traders on both Binance and BitMEX bet against the rally, this bearish sentiment could contribute to further price increases.
Santiment noted that ongoing fear, uncertainty, and doubt (FUD) from these traders may drive prices higher as liquidations occur. Nonetheless, this dynamic between trader expectations and price movement continues to create uncertainty in the market.
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