404,448 Bitcoin moved to permanent addresses: Bull run incoming?

Large amounts of BTC have been moved to permanent wallet addresses suggesting a rally despite the crash.

Written by Lennox Gitonga

Reviewed by Ann Maria Shibu

Updated 14:00 EDT August 7, 2024

Massive accumulation of Bitcoin by institutions as retail investors panic-sell.
USDT dominance bearish reversal pattern to trigger Bitcoin rally.

404,448 Bitcoin [BTC], worth $23 billion, were moved to permanent holder addresses over the past 30 days, according to on-chain data, indicating significant accumulation.

Retail investors, distracted by concerns such as the German government selling or Mt. Gox issues, may regret not buying the dip. This missed opportunity is highlighted as institutions are believed to have bought during the recent market dip.

BTC weekly chart mirrors 2019/20 BTC cycle

For weeks, warnings have emerged about investors and traders becoming overly optimistic, ignoring signs on the BTC weekly chart.

This year’s chart resembles the 2019-20 cycle, showing a double bottom, a peak with a double top, a break, a low, and then a rally.

Currently, BTC is in a correction phase, possibly having its last dip before another rally. This phase has attracted significant institutional investments, with many Bitcoins moving to permanent holder addresses.

Are we seeing history repeat itself?

USDT dominance falls, Bitcoin rises

When USDT dominance drops, crypto prices often rise. This was evident on ‘Crypto Black Monday’ when $1.7 billion in assets were liquidated.

USDT dominance tested a key resistance and was rejected, indicating a potential shift in market direction.

The 50-day exponential moving average was also retested, confirming the trend reversal. This event highlighted the high volatility of the crypto market and the inherent risks involved.