Age-Old Wallets Reactivate in Response to Bitcoin Rally
Long-term investors appear to be taking advantage of the recent surge in bitcoin’s price, with age-old wallet addresses becoming active once again. The supply of BTC last active in the past seven to ten years has reached a 5-year low, indicating increased trading activity among these investors.
Glassnode Data Shows Gradual Decline in Active BTC Supply
Data from Glassnode reveals that the amount of bitcoin last active within the past seven to ten years has gradually declined since mid-2021, reaching a low of 1.18 million BTC in 2023. This decline suggests that long-term holders have been redistributing their assets for some time, with motives potentially shifting as market conditions change.
Large BTC Addresses Diminish as Redistribution Trend Continues
The number of addresses holding at least 100 BTC has decreased to 15,793, further supporting the notion of a redistribution trend among long-term investors. This marks a low last seen in December 2022, down from 15,997 at the beginning of April 2023.
Exchange Reserves Surge, Indicating Increased Selling Pressure
CryptoQuant data shows a significant increase in BTC reserves on exchanges, reaching 2.7 million at the time of writing. This uptick in reserves suggests increased selling pressure on investors, as they take advantage of bitcoin’s recent rally to $30,000.
Bitcoin Eyes $31,000 Amid Price Reversal Concerns
Bitcoin currently trades at $30,196, having finally reclaimed the $30,000 price point on April 11 after ten months below it. With its sights set on $31,000, the asset’s Relative Strength Index (RSI) indicates that it may soon face a price reversal, as it has entered overbought territory.
Conclusion: Long-Term Investors Seize Opportunity Amid Bitcoin Rally
In conclusion, the reawakening of age-old wallet addresses and the redistribution of assets among long-term investors signal that many are capitalizing on bitcoin’s rally to $30,000. As the cryptocurrency strives to reach the $31,000 price point, investors should keep a close eye on market indicators, such as the RSI, to anticipate potential price reversals. The recent surge in exchange reserves and declining large BTC addresses demonstrate the dynamic nature of the market, with investors seizing opportunities as they arise.