A significant on-chain movement of 49,700 Bitcoin from the 6-12 month age band has recently occurred, as reported by CryptoQuant contributor XBTManager. This substantial shift in dormant Bitcoin holdings could potentially impact the market in the coming days.
Historically, large movements of long-held Bitcoin can create temporary selling pressure, leading to short-term price drops and causing panic among retail investors. However, this downward trend can also set the stage for a rebound, as buyers absorb the new supply and prices recover.
XBTManager warns that a large portion of these Bitcoins may be sold in the coming days, potentially creating selling pressure and enabling market manipulation. Investors should remain cautious about potential market fluctuations.
Bitcoin’s recent price performance has been a rollercoaster, with the asset trading below $90,000 earlier this week before bouncing back above $100,000. As of today, BTC hovers around $98,000, down roughly 10% from its all-time high of $109,000 in January. Despite the recent price decline, Bitcoin’s daily trading volume has increased from below $40 billion last week to above $58 billion today.
The movement of dormant Bitcoin could further contribute to the current market volatility. Investors should closely monitor the situation and be prepared for potential price fluctuations in the short term. As always, it is essential to conduct thorough research and exercise caution when making investment decisions in the crypto market.
Tags: Bitcoin, On-chain Analysis, Market Volatility, Investor Sentiment, Crypto Market
Source: https://www.newsbtc.com/bitcoin-news/49700-dormant-bitcoin-just-moved-whats-next-for-btcs-price/