Fifth Richest BTC Address Moves $6 Billion – How Will This Affect Bitcoin Price?
Will BTC See Another Corrective Drop? | Credit: Getty Images
Key Takeaways
- The fifth richest Bitcoin address awakened on March 25, moving $6 billion in BTC.
- The BTC price is struggling to move above the $71,000 resistance area.
- Did Bitcoin begin its bullish reversal on March 20, or was that just a temporary bottom?
The BTC price has fallen since reaching its all-time high on March 14. While it reversed the trend on March 20, it is still struggling to move above the $71,000 resistance area.
Bitcoin’s lack of strength when confronting its resistance leads to the possibility that the correction that started on March 14 is not yet over, and another decrease will take place.
Analyzing the BTC Transactions
On March 25, the fifth richest Bitcoin address moved more than $6 billion BTC in two transactions. The address is now nearly empty , holding only 1.3 BTC. The Bitcoin was previously transferred to this address from 92 different addresses on September 6, 2019, and had mostly laid dormant since.
To move the BTC, the address made two different transactions to two new wallets . The first transaction amounted to nearly $5.5 billion while the second to $610 million. Neither of the wallets has any previous transactions and they are not associated with any centralized exchanges.
This could be just a whale dividing their funds into different wallets instead of a whale preparing to sell a large portion of his holdings in a centralized exchange. In any case, it is worth monitoring the new wallets in case there are other transactions, especially if they are made to wallets associated with centralized exchanges.
Even though the transactions are not a warning of an impending price drop, the BTC price action does suggest that a decrease could be forthcoming.
BTC Price Prediction: Possible Correction Ahead
The six-hour time frame shows that the BTC price is in a precarious position just below the $71,000 resistance area. This is the 0.786 Fibonacci retracement resistance area and a horizontal level that previously provided support.
With the rejection on March 26 (red icon), it is likely the area was validated as resistance. Therefore, the short-term trend can be considered bearish as long as BTC does not close above this area.
Furthermore, if the increase starting on March 20 is an A-B-C structure, waves A:C have had a nearly 1:1 ratio, further aligning with the rejection and importance of the $71,000 resistance area.
What About the Long-Term Movement?
The longer-term daily time frame readings indicate that on March 14, the BTC price completed a five-wave upward movement that had started on January 23. If the count is correct, the price is now mired in an A-B-C corrective structure (black) and has just finished the B wave. This aligns with the short-term readings and the rejection from the $71,000 resistance area.
Giving waves A:C a 1:1 ratio will lead to a 14% drop toward the 0.382 Fib retracement support level at $60,100. This would line up with the magnitude of historical decreases in the crypto market.
The MACD and RSI also lean bearish. The RSI has been trending downward since it generated a bearish divergence during the March 14 top. Similarly, the MACD is down trending and has made a bearish cross (red icon).
However, this bearish outlook could all change with a daily close above the $71,000 resistance area. This would indicate the correction is over and the BTC price will increase to new highs.
BTC Price Could See Bearish Start to April
The BTC price is struggling with an important resistance area at $71,000. The long-term trend also suggests that the correction starting on March 14 is not complete yet. It is possible that another decrease toward $60,000 will occur before the price completes its correction.
