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.