Bitcoin dormant for years moved as BTC drops to $20K

NEW DELHI (CoinChapter.com) — A sudden movement of 7-9 years old Bitcoin (BTC) tokens has instilled fear in the markets.

A tweet from Philip Swift, founder of LookIntoBitcoin, highlighted the move. Swift also noted that such a large movement of Bitcoins has occurred only six times previously.

Whale movements are important since these traders have the power to influence the price of a token with their buying or selling power. Furthermore, whale trades might end up disrupting the markets as well.

Additionally, it is not often that Bitcoin, which has been dormant for 7+ years, is moved in large quantities. Swift noted that the market timing of the previous six similar trades was impressive.

The chart shows that BTC prices have gone through a major correction every time a whale has moved more than 5,000 BTC in a single block.

A large amount of BTC tokens suddenly flooding the market might hurt the crypto’s already struggling prices. However, the markets might remain unaffected if the whale movement is just a shuffling of portfolios.

Meanwhile, crypto trader Michaël van de Poppe said the crypto market might be headed for a moment of truth. Poppe commented on the total crypto market cap (TOTAL) retesting the 200-week moving average.

The trader noted that it would lead to the crypto market cap forming a higher low which might be pivotal in the next price cycle.

BTC Prices Hanging On To $20,000

Bitcoin prices moved back above $20,000 on Monday, after the token closed the previous week near $19,500. BTC prices gained 3.8% on Aug 29, but bears still seem to have a strong grip on the token’s price movements.

Long wicks on both ends of Aug 30’s daily candle highlight the struggle between bulls and bears. If the bears come out on top, BTC prices would likely fall to support near $19,500, which has been supporting BTC price action since Jul 4.

However, a failed retest of the $19,500 support might result in Bitcoin falling nearly 9% to reach support near $18,600.

The relative strength index for BTC remains near the periphery of the oversold region, clocking at 38.12 on the daily charts. It seems likely that Bitcoin’s jump on Monday took some bullish cues from its oversold RSI.

Conversely, if BTC continues to rally, the token would likely try to cross above immediate resistance at $21,000. Conquering and consolidating above $21,000 would likely provide Bitcoin the momentum to target resistance from its 50-day exponential moving average (50-day EMA, purple line) near $22,500.

At writing, BTC was trading at $20,398, up 0.5% on the day.