A bitcoin whale that hadn’t moved its coins in a few years made an unusual move in the market, scaring more observant traders away. According to one indicator, these bitcoins had been sitting for between 7 and 9 years. By whale, we mean those bitcoin addresses that have many coins, at least 1 thousand. In other words, when these actors move their values, falls or rises may follow. In the last seven days, bitcoin has accumulated a drop of 7.7% against the Dollar. One of the reasons was the harsh speech of Fed President Jerome Powell, who in a speech ended up saying that a recession should be seen in the market, as well as high interest rates. For a trader, the moment of truth is coming for cryptocurrencies in the coming days.
Bitcoin whale makes unusual move and may have caused a crash
Few times in the history of bitcoin, just 6 to be more exact, a whale moved an amount of 5,000 BTCs at once, especially when the coins were still for a while. But this Monday (29), an analyst noticed that a new movement of this magnitude was carried out by a whale, which had its coins sleeping for several years. For Philip Swift, founder of the website Looking Bitcoin, the movement is important at this moment in the market.
“Huge bitcoin movement a few hours ago that was dormant for +7 years. 5000BTC aged 7-9 years moved in a single block. One of the biggest movements of coins so old. Potentially important in terms of market timing.”
1/ Huge movement of bitcoin a few hours ago that had been dormant for +7yrs. 5000BTC that was 7-9yrs old moved in a single block. One of the largest ever moves of coins is old. Potentially important in terms of market timing, because… pic.twitter.com/tvlCta6zav
— Philip Swift (@PositiveCrypto) August 29, 2022
Philip’s explanation of the whale’s movement is related to the other 6 times such a transaction was carried out, which shook the market each time. Thus, it may be that the new whale transaction will affect the price of bitcoin this Monday, if it decides to sell its coins. If it is just a movement between own portfolios, however, it is possible that the market will not be shaken.
Indicator shows Bitcoin drop at 6 times ancient whales moved their coins. Credit: LookIntoBitcoin
“Moment of truth for cryptocurrencies approaches”, says trader
For trader Michaël van de Poppe, the cryptocurrency market is experiencing a moment of truth, which could be instrumental in defining the next price cycle. In your technical analysis published on Monday, the analyst indicated that the 200-week moving average is being tested and sentiment is down.
“Moment of truth coming for the entire crypto market. Facing yet another test of the 200-week MA, which could ultimately lead to an HL and retest. Sentiment is at a low end.”
Next Wednesday (31), bitcoin closes the month of August and until this Monday, a 14% drop is expected for the period, after a 16% rise in July.
