It seems that gigantic investors are upping the ante; at least that is the case with Bitcoin and its latest version rebound to over $63,000 today. And market observers have indeed noticed. Inside, however, is key on-chain data that suggests the accumulation of Bitcoin whales and the reactivation of dormant wallets could be signs of a coming super price rally.

Ki Young Ju, founder of CryptoQuant, pointed to an raise in the flow of Bitcoin into custodial wallets, typically used by institutional players for safe and sound, long-term storage. Such an raise indicates that immense players are positioning themselves for what they believe could be the next gigantic price move.

Whales gather #Bitcoin.

Six days of accumulation alerts in a row. Mostly from inflows to the deposit portfolio.

Nothing has changed for Bitcoin; we are in the middle of a bull cycle. photo:twitter.com/DE0A1Khhus

— Ki Young Ju (@ki_young_ju) September 18, 2024

Dormant wallets come back to life

A trend in recent months has been the revival of dormant Bitcoin wallets. For example, 203 BTC, worth $12.18 million, were transferred from wallets that had been inactive for over a year to Binance, resulting in a whale profit of $6.89 million.

The second wallet was unused for over a decadewith 146 BTC inside. That would be $8.09 million today. In 2013, it would have sold for just $80,257, an astonishing 9,985% raise.

Whale Accumulation Signals Long-Term Optimism

The accumulation pattern follows Bitcoin’s recent price gains and fuels speculation that whales are waiting for prices to rise even higher. Ju’s analytical insights raise the issue that institutional investors have not lost faith in Bitcoin’s future even with the volatility since March 2024.

Bitcoin price rose from a high of $58,909 in September to $59,530. Although there was a brief dip to a low of $53,940 on September 6, weighty pressure from whales and institutions buying bitcoin drove the price higher.

Further gains expected: technical indicators

Price for Bitcoin to $63,637 currently indicates impressive upside potential, supported by technical factors. The near future intersection of the 50-day and 200-day exponential moving averages indicates a more positive trajectory.

Furthermore, the RSI is currently at 46.79, which is still below the overbought level, meaning there is still plenty of room for the price to rise without the market extending too much.

Inactive portfolios cause market volatility

Bitcoin price stabilization above the key 0.5 Fibonacci retracement level at $57,688.42 provides excellent support for bullish sentiment.

The activation of dormant wallets can also trigger market volatility due to the reaction to increased supply. Crypto asset manager Ceffu recently moved massive amounts of Bitcoin and Ethereum to Binance, prompting speculation about selling pressure from long-term holders.

Featured image from Pexels, chart from TradingView