After hitting a weekly high of $48,000 on Monday, BTC price erased gains and dropped to $44,250 after a 5.1% retracement and showed that the $48,000 resistance is a strong hurdle for the bulls. So, just as BTC dropped, interestingly, a cryptocurrency wallet with approximately 11,326 BTC finally woke up on March 29 after many years of inactivity, according to Whale Shadows.
Whale Shadows is a tool that was created by market analyst Philip Swift to track coins that have been activated after years of inactivity. Thus, it is designed to capture when ‘old’ +100 BTC is moved.
Therefore, according to Swift, the purpose of the tool is to map the former whales of BTC, since, generally, their movements are often accompanied by significant price increases or decreases.
“There was significant movement on the chain yesterday, with +10k BTC that hadn’t moved in the last 7-10 years finally moving,” the analyst tweeted.
So, based on data from Swift’s tool, the recent movement of dormant coins was one of the two biggest since 2017, when BTC hit $20,000.
According to Swift, the inactive funds moved may be linked to the 2014 theft of the defunct cryptocurrency exchange Cryptsy. However, the analyst did not provide evidence to confirm his assumption.
So, while the sleeping whales wake up, BTC seeks to resume its bullish movement started last week.
BTC’s fall has also knocked other cryptocurrencies down, with ETH, XRP, Cardano, Terra and Polkadot all falling between 1.03% and 5.36% in value.
So historically, April has been a bullish month for BTC for seven of the last 10 years. And despite BTC closing March at $45,517, analyst PlanB believes the stock-to-flow model is still on track.
Meanwhile, analysts at US investment firm VanEck stated that BTC could be valued at $4.8 million per coin in the future if it replaces fiat currency to become the global reserve asset.