Bitcoin Whale Moves $116M: Market Jitters or Bullish Sign?
Bitcoin Whale Activity: Cause for Concern?
Bitcoin (BTC) recently rebounded from a low of $107,000, reaching a local high of $117,266. At press time, BTC is trading at $111,151, up 1.24% on the day. This recovery is accompanied by significant on-chain activity, raising questions about market stability.
Key Developments:
- Dormant Whale: A whale dormant for 12 years moved 1,000 BTC (worth approximately $116 million).
- Shark Accumulation: Smaller entities, referred to as 'sharks,' accumulated 12,000 BTC.
- Exchange Outflows: Netflows indicate sustained outflows from exchanges.
Price Levels to Watch:
- Upside Targets: $118,102 – $119,352
- Downside Risk: $115,203
Decoding the Whale's Move
The movement of dormant coins is reflected in the Supply Adjusted Dormancy metric, which saw a modest increase on September 15th. While not a massive wave, it signals that older BTC holdings are being activated.
Lookonchain reported that the whale in question received 1,000 BTC at a price of $847 each, representing an enormous profit after over a decade of holding.
Such transfers can indicate preparation for institutional custody or off-market deals and are usually neutral to mildly bullish, unless the coins are subsequently deposited on exchanges.
Large-Scale Accumulation Continues
Despite the whale's activity, larger entities are still accumulating Bitcoin. A new wallet received 5,817 BTC (worth $678 million) from FalconX, according to Lookonchain. This indicates strong conviction in the market's future.
Data from Checkonchain reveals that smaller players (Fish and Sharks) have collectively increased their holdings by 12,000 BTC in just three days, bringing their total balance change to 62.5k BTC. This aggressive accumulation suggests strong buying pressure.
Consistent with this trend, Bitcoin's Exchange Netflow has been predominantly negative for the past four days, meaning outflows exceed inflows. Currently, the Netflow is at -2.2k BTC. This is typically seen as a bullish sign, potentially leading to higher prices as supply on exchanges decreases.
Potential Price Trajectory
Analysis suggests Bitcoin's recent rally is linked to decreased spending and increased accumulation by larger entities. If whale accumulation continues, BTC is likely to test the $118,102 level and potentially reach $119,352.
However, if the coins moved by the dormant whale end up on exchanges, this could trigger a correction, potentially pushing the price back down to $115,203. Codeum provides blockchain security and smart contract audit services which are important during events like this to ensure safe transfers.