Large investors are significantly ramping up their investments in Bitcoin, propelling its price over $63,000. Market observers have noticed this trend, supported by key on-chain data indicating Bitcoin whale accumulation and the reactivation of dormant wallets. These could be signs of a significant price spike on the horizon.
Ki Young Ju, founder of CryptoQuant, highlighted the rise in Bitcoin flowing into custody wallets. This trend is often linked to institutional players storing Bitcoin for the long term, suggesting big players are gearing up for another major price move.
The reactivation of dormant Bitcoin wallets has also been noteworthy. Recently, 203 BTC, worth $12.18 million, were transferred to Binance from wallets inactive for over a year. Another wallet, unused for over a decade, holds 146 BTC, valued at $8.09 million today, marking a significant increase in value.
The accumulation pattern by whales fuels speculation about future price rallies. Analytical insights suggest that institutional investors remain optimistic about Bitcoin's future, despite recent market volatility. Bitcoin's price recently climbed from $58,909 to $59,530, briefly dipping to $53,940 before resuming its upward trend due to purchasing pressure from whales and institutions.
Technical indicators also support the potential for more gains. The price near $63,637 shows impressive potential, with technical factors pointing to a positive trajectory. A crossover between the 50-day and 200-day Exponential Moving Averages suggests an upward movement. Additionally, the Relative Strength Index (RSI) at 46.79 indicates room for price increases without the market becoming overbought.
A key Fibonacci retracement level at $57,688.42 provides strong support for the bullish outlook. However, the activation of dormant wallets could introduce market volatility due to increased supply. Recently, Ceffu transferred massive amounts of Bitcoin and Ethereum to Binance, sparking speculation about long-term holders selling under pressure.
