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Bitcoin, the largest cryptocurrency by market capitalization, recently witnessed the largest spike in dormant token trading volume in the past two years. This significant increase in activity includes Bitcoin tokens suddenly changing hands after not being moved for long periods of time, and analysts say this could be a harbinger of increased price volatility soon. That's what I think.
crypto analyst Ali In a new tweet, Bitcoin noted that trading of the dormant BTC token has witnessed the biggest surge in over two years.
Historically, such movements have been associated with large holders or “whales” who hold large amounts of Bitcoin and can influence market trends due to the size of their transactions.
A surge in trading of dormant BTC tokens could have a significant impact on the price of Bitcoin. Historically, periods of increased price volatility in the crypto market have often been preceded by increased activity in dormant tokens.
According to Ali, the sudden increase in the number of dormant BTC tokens being traded could indicate a possible increase in price volatility going forward. The rationale is that large and sudden transactions can cause a domino effect, affecting the supply and demand equilibrium and thus prices.
In another tweet, Ali reported that more than 25,000 Bitcoins worth about $1.6 billion were moved to accumulation addresses, the largest influx to these BTC wallets this year and a sign of increased whale activity. It shows.
Bitcoin (BTC) fell to a low of $60,771 last week and is currently trading at $64,809, with market participants expecting more volatility in the near term. Bitcoin is up about 128% year over year, but is down 12.2% from its all-time high of $73,798 on March 14th.
According to Ali, key Bitcoin support levels to watch include $61,100, $56,685, and $51,530. On the other hand, key resistance points for BTC are $66,990 and $72,880.
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Tomiwavoldo Olajide
