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Bitcoin (BTC) continued to trade sideways on Tuesday following a sluggish start to the week, despite a strong resurgence that began on September 6. Notably, the top cryptocurrency has risen by approximately 20% since then. However, since Friday, the price has remained constrained in a tight falling range, reflecting a downward channel that leaves investors uncertain about the asset’s future trajectory,
Amid this climate of indecision, analysts are raising concerns about a potential downturn for Bitcoin. On Tuesday, popular crypto analysis firm Cryptoquant noted a significant increase in activity on the Bitcoin network, particularly in the use of older coins.
“Old bitcoins are being moved,” XBTManager, an analyst at the firm, warned. “This uptick in network activity during Bitcoin’s recent upward trend could signal a return of selling pressure.”
In a detailed report, the analyst tracked the movement of nearly 100,000 Bitcoins from various age bands. Notably, he highlighted how, on September 18 alone, over 21,000 Bitcoins held for different durations were transferred, including nearly 5,000 stored for two to three years.
The subsequent days saw similar trends, with substantial amounts of Bitcoin moving from wallets that had held them for one week to up to two years. He further emphasized that as more of these coins are transferred, Bitcoin’s upward momentum may falter, urging investors to exercise caution.
Compounding these concerns, recent reports from Arkham Intelligence indicate an influx of coins from dormant wallets. Notably, on Tuesday, the firm revealed that a Bitcoin whale mined coins during Bitcoin’s first two months and recently transferred 5 BTC to the Kraken exchange. This wallet, which still holds 1,215 BTC valued at approximately $77 million, had remained inactive for nearly a decade. The sudden movement of such ancient Bitcoins has sparked speculation about whether they could belong to Satoshi Nakamoto, the mysterious creator of Bitcoin.
Earlier on September 20, the firm reported further activity from early mining addresses. A total of 250 BTC, valued at nearly $15.95 million, was transferred from five addresses that had been dormant since January 2009. These addresses were among the first to mine Bitcoin, and their awakening has raised eyebrows in the crypto community.
That said, analysts have been left questioning the motivations behind this resurgence of activity from long-dormant wallets. The recent transfers, particularly those from early miners, could indicate a strategic decision to capitalize on Bitcoin’s current price levels or a larger shift in market sentiment.
At press time, BTC was trading at $63,726 reflecting a 0.89% surge over the past 24 hours.
Nermeen Nabil Khear