Data from blockchain analytics firm CryptoQuant reveals that over 5000 Bitcoin more than 7 years old were moved on Saturday.
According to the company’s community manager “Maartuun” on Twitter, this could be a sign of further downside to come.
- In a post on Sunday, Maartuun shared a chart showing the on-chain movement history of bitcoins during various timeframes.
- Exactly 5.019 BTC that hadn’t moved in 7 to 10 years were transferred in one block on August 28. One block is usually about 10 minutes long.
- As Maartuun explained, about three other unusually large transactions involving old coins have occurred this year.
- The largest was on March 29, when 10,328 BTC moved while the price was at $47,700. The move formed a local high but soon resulted in a retrace.
- The next occurred on May 13, when 2800 BTC moved at once. “Price ranged for one month before breaking down further.” said the analyst.
- The most recent was on July 20th, when 1,105 ancient BTC were transferred. This was followed by a 10% price retracement before Bitcoin recovered again.
- Maartuun noted that Saturday’s transaction took place in a similar environment to the one in May when Bitcoin’s price was closer to the bottom of its range. However, unlike the May transfer, this transaction was not sent to an exchange.
“It is definitely not a bullish sign, but I’m not sure if we will see further downside or just consolidation similar to May,” concluded the analyst
- When asked for their thoughts on the new data, 93% of respondents thought the news was ‘bearish’ rather than ‘bullish.’
In March, nearly 500 Bitcoin were moved from an old whale’s wallet address for the first time since 2010. The cumulative worth of those coins was $19,102,328.36 at the time.