Continue reading U.TODAY
Google News
Bitcoin, the largest cryptocurrency by market capitalization, recently experienced its biggest surge in dormant token trading in over two years. This significant increase in activity is causing Bitcoin tokens that have not moved for an extended period of time to suddenly change hands, which analysts say could soon be a harbinger of increased price volatility.
Crypto analyst Ali pointed out in a new tweet that Bitcoin just experienced the largest surge in dormant BTC tokens changing hands in more than two years.
In the past, such moves have been associated with large holders or “whales” who own large amounts of Bitcoin and can influence market dynamics due to the size of their transactions.
The increase in inactive BTC tokens changing hands could significantly impact the price of Bitcoin. Historically, increased activity in dormant tokens has often preceded periods of increased price volatility in cryptocurrency markets.
According to Ali, the increasing increase in traded dormant BTC tokens could indicate a possible increase in future price volatility. This is because large, sudden transactions can lead to a domino effect that affects the balance between supply and demand and therefore the price.
In a separate tweet, Ali reported that over 25,000 Bitcoins worth around $1.60 billion were moved to accumulation addresses, marking the largest inflow into these BTC wallets this year and indicating increased whale activity.
Bitcoin (BTC) fell to a low of $60,771 last week and is now trading at $64,809, with market watchers expecting further volatility in the near term. Bitcoin is up about 128% year-over-year while down 12.2% from its all-time high of $73,798 on March 14.
According to Ali, critical Bitcoin support levels to keep an eye on include $61,100, $56,685, and $51,530. On the other hand, the key resistance points for BTC are $66,990 and $72,880.
About the author
Tomiwabold Olajide
Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducts comprehensive price analysis, and shares predictions on estimated market trends. Tomiwabold graduated from the University of Lagos.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.