Bitcoin (BTC), which plunged $3,000 in the morning of April 1, was accompanied by a well-anticipated pullback.
The Whale Shadows indicator revealed that over 11,000 BTC had suddenly disappeared from its wallet on March 29. It had previously been there for the majority of a decade.
Dormant coins echo December 2017
Whale Shadows is a concept by Philip Swift that tracks coins that are active again after a significant amount of time being out of circulation.
The metric is tuned to record 100 BTC or less leaving their long-term bank account. Previously spikes in this metric coincided with what Swift calls “major highs” of price.
He noted that there was “a significant movement on-chain yesterday with +10k BTC finally moving after being stagnant for 7-10 years.”
This spike, which is described as involving 7-9 years of dormant bitcoins on Swift’s analytics website, LookIntoBitcoin (a Bitcoin-related site), is one the largest in Bitcoin’s history.
Old coins have never moved on this scale before in December 2017, when BTC/USD reached an all-time high, which would be unbeaten for three more years.
Chart of the Bitcoin Whale Shadows. Source: LookIntoBitcoin
However, Twitter users had a wide range of opinions about the significance and impact of the latest event.
i It is possible that the massive number of activated dormant #BTC mentioned in previous posts could be linked to the #Cryptsy theft/hack.
— Whale Alert (@whale_alert), March 29, 2022
Swift claimed that the funds were linked to a hack of Cryptsy’s cryptocurrency exchange in 2014. Others disagree.
Nunya Bizniz, a popular user, further pointed out that the spike occurred after Bitcoin fell to its $69,000 highs and not before.
The past 3 were moved before substantial corrections. Why do you believe this is happening after a substantial correction
— Nunya Bizniz (@Pladizow) March 31, 2022
Bitcoin cannot escape the Ides of March
Cointelegraph reported that Bitcoin was a hot commodity. It reached its highest level of 2022 and gained as much as 29.4% in the three months between March lows, highs, and highs.
Related: Bitcoin has regained its key price trendline following its longest absence from March 2020
Pentoshi, a popular trader, still considered the possibility of a trip to over $50,000 next.
However, Crypto Ed’s outlook was not as bright. After failing to maintain his support zone at $45,000 and the $46,200 annual open, Bitcoin now faced a deep retracement and reentry into its established trading range.
#BTC will perform a complete retrace of previous pumps in case the green box fails to hold. Like every pump in the current ….cycle, back to the demand zone. pic.twitter.com/ovGwuJrBSR
— Ed_NL (@Crypto_Ed_NL), March 31, 2022
Whales on Bitfinex previously caught the attention of investors with a sell barrier near spot prices. This was one that bulls managed to temporarily overcome.
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