Bitcoin’s sharp and sudden move lower on Thursday has opened the door to further selling pressure in the near term. As Bloomberg recently reported, trading activity by long-dormant crypto accounts is on the rise, which likely means further volatility ahead.
Selling Subsides – For Now
Bitcoin reached a session low of $3,607.39 on Saturday, according to CCN’s price tracker. The leading digital currency is currently valued at $3,667. where it was down 0.8% over 24 hours.
On Thursday, bitcoin experienced its worst single-day drop since November. The rapid depreciation challenged the notion that the market had turned a corner following last month’s swing low.
As Hacked reported on Friday, BTC/USD is coming up on a major support level ($3,550). Any move lower would drag bitcoin into “GTFO” territory, according to former IMF economist Mark Dow.
The following chart is a live feed of bitcoin’s price via Bitstamp. The asset’s key momentum indicators (RSI and MACD) showcase the extent of the recent drop and how it may impact investor sentiment moving forward.
Bitcoin’s daily trade volume spiked north of $6 billion in the latter half of the week. On Saturday, BTC trades on virtual exchanges amounted to $5 billion, according to CoinMarketCap.
A recap of this week’s major events: Crypto Winter Grows Colder; Trump Goes Prime-Time.
Dormant Wallets Activated
Anonymous owners of long-dormant bitcoin accounts have traded with greater frequency over the past three months, and that trend appears to be intensifying in the new year. Data from Flipside Crypto suggest that, beginning in October, a large number of dormant accounts began moving their coins again. A bitcoin account is considered ‘dormant’ if it hasn’t been touched for between six months and more than 2 1/2 years.