12-year Bitcoin whale’s $116 mln move shakes the market – Crash risk?

Key Takeaways

Why is Bitcoin gaining attention now?

A dormant whale moved 1,000 BTC, sharks accumulated 12k BTC, and Netflows showed sustained outflows.

What are the key price levels ahead?

Upside targets stand at $118,102–$119,352, while downside risk remains near $115,203.

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Since hitting a low of $107k, Bitcoin [BTC] staged a strong comeback and rallied to a local high of $117,266. At press time, BTC traded at $111,151 after rising 1.24% on daily charts.

That move left investors and large entities repositioning strategically.

Dormant whale moves 1,000 BTC

As Bitcoin recovered, dormant coins started to move. In fact, Supply Adjusted Dormancy spiked to 0.0000012 on the 15th of September, then retraced to 0.00000114 on the 16th. 

This suggested that some old BTC moved, although the rise is modest and not a large wave of dormant whales. 

Lookonchain reported one such dormant whale movement. As per the on-chain monitor, a dormant whale woke up after 12 years and transferred 1,000 BTC worth $116.88 million. 

The whale had received 1,000 BTC at $847 apiece, worth $847k at the time, locking in a profit of over $116 million.

Such dormant transfers often hint at institutional custody preparation or off-market deals. They tend to be neutral to slightly bullish unless tokens move onto exchanges.

Large entities stacking more

While some dormant coins moved, large players continued buying. According to Lookonchain, a newly created whale wallet received 5,817 BTC worth $678 million from FalconX.

Typically, when whales turn to accumulation, it signals conviction with the market, a clear bullish signal.

Aggressive accumulation extended to smaller cohorts. Checkonchain data showed Fish and Sharks’ Balance Change climbed to 62.5k BTC, with 12k BTC added in three days.

Often, a higher balance change means buying volume outpaced spending, a clear sign of aggressive accumulation. Exchange activities further echoed this trend. 

CryptoQuant data showed Bitcoin’s Exchange Netflow stayed negative for four consecutive days, with one positive print in the last eight.

At press time, Netflow was -2.2k BTC, indicating more outflows compared to inflows. Historically, increased accumulation from large entities such as whales causes upward pressure on BTC, a prelude to higher prices. 

What’s next for BTC?

AMBCrypto’s analysis suggested Bitcoin’s rebound aligned with falling spending and stronger accumulation from large entities.

Therefore, if whales continue to accumulate, BTC will undoubtedly make more gains on its price charts. Meaning, BTC could reclaim $118,102 and push toward $119,352.

However, if the coins transferred by a dormant whale end up on exchanges, it will result in significant downward pressure on BTC. Such a scenario can potentially see prices retrace to $115,203.