Analyst claims that one of the main reasons behind Bitcoin’s recent downturn was movements from dormant addresses.
According to the CryptoQuant analyst, over 52,000 Bitcoins (BTC), held for less than three months, have been moved on-chain over the past three days. In addition, 75,228 coins aged between three and six months have also been moved.
Wallet movements led to selling“On August 29th, we observed the transfer of 23,345 bitcoins aged 1w-1m, 1,220 bitcoins aged 6m-12m, and 16,003 bitcoins aged 5y-7y.” – By @XBTManager Full post 👇https://t.co/T9kLlgbcLv pic.twitter.com/BYLvXCcFEw
— CryptoQuant.com (@cryptoquant_com) August 29, 2024
These assets belong to short-term and mid-term holders. Per CryptoQuant’s data, 2,834 BTC tokens that have been dormant between six months and two years started making movements on-chain.
As the price continues to consolidate below the $60,000 mark, data shows that 16,003 Bitcoins aged five to seven years have entered the market.
You might also like: Polygon on-chain activity spikes despite MATIC price dip
The analyst claims these movements have been contributing to the market-wide bearish sentiment and “need to stop.”
“When bitcoins that have remained dormant for a long time are moved, it’s usually in preparation for something, and you may see them used for selling.”
CryptoQuant analyst wrote.
While Bitcoin’s funding rate hints at a potential rebound for the asset’s price, the increased amount of dormant circulation could still trigger a further price drop.
Bitcoin is down by 0.2% in the past 24 hours and is trading at $59,750 at the time of writing. The asset’s market cap is currently sitting at $1.17 trillion with a daily trading volume of $33 billion.
BTC price and RSI – Aug. 29 | Source: crypto.news
The BTC Relative Strength Index is still hovering at the 46 mark, according to data from crypto.news price page. The indicator shows that Bitcoin is oversold at this price point but is getting close to the neutral zone as the price roams near the $60,000 mark.
Read more: Guilty, or not? What’s happening around the Durov’s arrest
