Bitcoin’s Ancient Whales On The Move: Could This Bolster BTC Price Beyond $74,000?

As Bitcoin (BTC) grapples to move upward, Ki Young Ju, creator of CryptoQuant reveals that Bitcoin’s On-chain data indicates a surge in the transfer of old BTC coins. This movement has pushed the Bitcoin Average Dormancy chart to its highest point in 13 years. 

According to the Bitcoin Average Dormancy — data that illustrates the typical duration of inactivity for each BTC —, the coins that have been dormant for 3-5 years have been transferred and acquired by new holders. 

Interestingly, as observed, the data indicates that these coins weren’t sent to exchanges. Rather, it’s highly probable that they were exchanged through over-the-counter (OTC) transactions. 

Typically, transfers to centralized exchanges such as Binance or Coinbase might imply an inclination toward selling. The influx of coins into these exchanges, particularly from large holders like whales, raises the possibility of price dumping. 

However, when transactions occur through over-the-counter (OTC) channels, the effect on spot rates is minimal, presenting a favorable scenario for bullish sentiment. 

As per further analysis, these transfers used the Spent Output Profit Ratio (SOPR) indicator indicating that the whales conducting them have realized massive profits. Historically, whenever whales sell off and capitalize on profits, it often leads to price declines. 

Despite these movements, BTC prices have remained relatively stagnant, facing challenges in surpassing the mid-April peak of $68,000. To confirm a clear bullish trajectory, market analysts are anticipating a breakthrough above $73,800 accompanied by heightened trading activity, indicating robust buyer engagement. Such a transition would require overcoming the existing liquidation obstacles, paving the way for potential retests of all-time highs. 

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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