Warning signs of a potential sell-off intensify.
An unknown whale moved about 15,480 BTC, aged 3 to 5 years, on-chain yesterday, per a tweet from crypto analyst and CryptoQuant verified author Maartunn (@JA_Maartun).
Again: old coins on the move 😰
15,480 #BTC with age of 3y ~5y has moved onchain 🚩https://t.co/g8yMIVcoQl pic.twitter.com/hrJ2b7n8yu
— Maartunn (@JA_Maartun) January 5, 2023
Notably, earlier in the day, the same analyst had pointed out that a dormant account had become active moving 4000 BTC aged 2 to 3 years.
Again the intent of these whales is unknown, and it is unclear if these coins have made their way to exchanges, but old Bitcoin on the move is generally a bearish signal.
Meanwhile, Maartunn, in a separate tweet yesterday, has also warned of the potential for further capitulation as Bitcoin funding rates spike. While he concedes that the spike in funding rates is not bearish, he points out that these traders would be forced out of their position if the price goes against them.
BTC Funding Rates are getting hot 🥵
Traders are betting on higher prices and are willing to pay a serious amount of interest. That doesn’t have to be bearish perse, but when the price starts to move against them. they might be forced out of the positionhttps://t.co/OBvcISPvUm pic.twitter.com/uXdxEJ8U7x
— Maartunn (@JA_Maartun) January 5, 2023
All of these come after the analyst warned Wednesday about an impending market crash as altcoin trading dominance tapped the 50% level. Maartunn gave more insight in a CryptoQuant Quicktake shared today.
According to the analyst, historically, sustainable price moves in the crypto market are led by Bitcoin. Noting that traders majorly trade altcoins when Bitcoin’s price action becomes boring, Maartunn highlights that these altcoins are riskier assets that whales can more easily manipulate.
Recall that Bitcoin’s volatility recently created fresh lows making for a tightly ranging and boring price action in recent weeks, aside from a few exceptions at the start of the year.
The analyst sounding the alarm on the disturbing rise in altcoin trading dominance pointed out that the same played out during the ICO bubble in 2018, the end of the 2021 bull run, and the Ethereum Merge. While Maartunn says the price dump may not be as hard-hitting as the examples above, he warns that there is significant potential for more downside.
It is worth noting that the crypto markets have started the year positively, with altcoins rallying and Bitcoin posting modest gains in the first 3 days. Bitcoin’s price has managed to hold its own in the face of significant fear, uncertainty, and doubt fueled by Digital Currency Group’s insolvency fears and negative US economic data, as recently highlighted by Bitboy.
Today could be a panic day. So much news in last 12 hours it’s honestly hard to keep up or cover it all.
If Bitcoin holds $15k in the midst of DCG/Genesis/Silvergate debacle on top of unemployment going the wrong way (from ADP)… chances the bottom is in dramatically goes ⬆️
— Ben Armstrong (@Bitboy_Crypto) January 5, 2023
Bitcoin is trading for $16,811.96 at press time, down 0.18% in the last 24 hours, seemingly undisturbed by recent whale movements.
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Source: https://thecryptobasic.com/2023/01/06/over-15k-btc-aged-3-to-5-years-on-the-move/?utm_source=rss&utm_medium=rss&utm_campaign=over-15k-btc-aged-3-to-5-years-on-the-move