Recently, significant movement of older Bitcoin holdings has been observed on the network, sparking discussions about potential selling pressure in the market. This activity, as shown by the on-chain analytics platform CryptoQuant, has led to analysts advising extreme caution in the face of this development.
One CryptoQuant analyst, using the pseudonym XBTManager, noted that Bitcoin’s upward trend has been accompanied by increased activity on the network, particularly from wallets long holding Bitcoin. The concern is whether this movement will lead to a broader market reaction.
XBTManager detailed these movements, noting transfers of over 21,000 Bitcoin on September 18 and over 29,000 BTC on September 23 from older wallets. The analyst stressed the importance of monitoring the destination of these BTCs, especially if they are being transferred to exchanges, which could indicate an impending sell-off.
The increased movement of old Bitcoin raises concerns about potential selling pressure. Large-scale transfers from long-held wallets could slow down Bitcoin’s current upward momentum. XBTManager advised extreme caution as more transfers occur on the network.
Another analyst, BaroVirtual, echoed this caution, pointing out a recent decline in institutional short positions. While this might offer short-term relief, BaroVirtual expressed concern over the long-term implications, suggesting that a buildup of short positions is needed for Bitcoin's growth.
