The market reacted as long-term Bitcoin holders awakened to move billions of dollars’ worth of BTC over the weekend.
A prominent market analyst highlighted this in a recent commentary on the back of an unexpected bearish turn of events for Bitcoin. The crypto leader’s short-lived push to $118,000 on Sunday sparked optimism, but BTC quickly retreated to a low of $114,750 today.
Long-Term Bitcoin Holders Resurrect
CryptoQuant analyst JA Maartunn, who shared this in an August 17 commentary, revealed that 3 to 5-year-old Bitcoin wallets reawakened from dormancy and moved a staggering 31,968 BTC ($3.7 billion) on August 16. This was a rare on-chain occurrence, as the Bitcoin Spent Output Age Band suggests, and is the first shift of that magnitude since June 2024.
Notably, such movement often suggests increasing selling pressure among HODLers. Maartunn also aligns with this sentiment, further highlighting that such shifts make a key turning point in the market trend.
Historical Moves and Impact on Bitcoin Price
For context, the research shared that whales aged 3 to 5 years moved 33,803 BTC on 24 January 2024, marking Bitcoin’s bottom. BTC traded close to $40,000 at the time and has never retested the price level since then.
A similar move occurred on 23 March 2024, where this address bracket moved 95,090 BTC. This marked a local top for Bitcoin as it dropped from a new all-time high of $73,700 attained a few days earlier.
On 22 June 2024, 43,641 BTC moved from these long-term holders, which added further selling pressure to the market following a consolidatory run. A similar shift happened on 30 July 2024, with a 29,994 BTC move marking a local top.
Additionally, they transferred 23,012 BTC on 24 December 2024 after Bitcoin’s initial rally to six-figure values, which also marked a local top. As a result, he emphasized that the market would make a move after the August 16 development.
Market Takes a Downward Turn
Meanwhile, the market has taken a downward turn since the whale transactions, correcting 3% from a high of $118,624 to its current price of $115,053. This further adds to the distance between BTC and its new all-time high of $124,457.
Notably, Bitcoin has been on a downtrend since the high last week, currently trading 7.5% away from there. Today’s correction has spiked liquidation to $576 million in the past 24 hours, as market observers point to overleveraging.
Notwithstanding, some still insist the mid and long-term trajectory for Bitcoin remains positive. For instance, Canary Capital CEO Steven McClurg claimed that there is a 50% chance that Bitcoin will hit $150,000 this year.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
