Bitcoin Held For Years Are Now On The Move, Is This A Signal For Caution?
September 25 2024 - 4:30AM
NEWSBTC
Recently, a significant movement of older Bitcoin holdings has been
observed on the network, sparking discussions about potential
selling pressure in the market. This activity, as shown
in data by the on-chain analytics platform CryptoQuant,
has led to analysts advising “extreme caution” in the face of this
development. Related Reading: ‘Uptober’ Is Just Around The Corner:
Here’s Where Bitcoin Price Is Headed Old Bitcoin On The Move: A
Signal for Caution? A CryptoQuant analyst under the pseudonym
XBTManager noted that Bitcoin’s upward trend has been accompanied
by increased activity on the network, particularly from wallets
that have held Bitcoin for extended periods. The question now is
whether this movement will lead to a broader market reaction. Old
Bitcoins are on the move “Overall, we are seeing a significant
increase in the movement of coins from various age bands during
this latest leg of the rise, with continuous transfers happening on
the #Bitcoin network.” – By @XBTManager Full post
👇https://t.co/LR0bvdvAOY pic.twitter.com/sUe6yqp4Xj —
CryptoQuant.com (@cryptoquant_com) September 24, 2024 XBTManager
detailed these movements, noting several significant transfers of
old Bitcoin in recent days. For example, on September 18, over
21,000 Bitcoin were moved from wallets that had held the
cryptocurrency for periods ranging from one week to three years.
Similar patterns were observed on the following days, with over
29,000 BTC, held for six to twelve months, being moved on September
23 alone. The analyst emphasized the importance of monitoring where
these BTCs are headed—whether they are being transferred to
exchanges, which could suggest an impending sell-off. The increased
movement of old Bitcoin raises concerns about potential selling
pressure in the market. As XBTManager pointed out, the large-scale
transfer of Bitcoin from wallets that have held onto the asset for
months or even years could slow down Bitcoin’s current upward
momentum. “As more transfers occur on the network, Bitcoin’s upward
momentum begins to slow down. Extreme caution is advised,” the
analyst noted. Related Reading: Analyst Who Predicted The Bitcoin
Rally Reveals Time To Sell Potential Selling Pressure on The
Horizon? Another CryptoQuant analyst, BaroVirtual, has echoed the
sentiment of caution. BaroVirtual highlighted a recent decline in
institutional short positions, which may not necessarily be a
positive signal for the market. According to the analyst, while the
reduction of short positions might offer some short-term relief,
the analyst expressed concern over the long-term implications,
noting: I don’t quite agree that this is a positive signal if
institutional investors are no longer aggressively shorting
Bitcoin. Perhaps this is good for the short term so the market can
take a breath. However, the build-up of short positions is needed
in the long term to fuel Bitcoin’s growth. Featured image created
with DALL-E, Chart from TradingView
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