Bitcoin (BTC), after reaching its record high of $124,000, is currently in a consolidation phase. Investors are cautious due to the volatility. Price fluctuates in a tight range. It shows resilience, but it also fails to establish any clear direction. Many traders feel that this is the quiet before the storm, because the market is at a critical point.
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Long-term Bitcoin investors pay more attention to structural signals than short-term traders. These are the ones that will define Bitcoin in its next phase. Maartunn is a leading analyst who recently brought attention to a key on-chain phenomenon: Dormant whales coins have been moving more, and this movement appears closely linked with recent price movements. In the past, these movements often preceded more intense market reactions. They either reinforced bullish momentum, or caused corrective phases.
It is possible to see the alignment of two dormant Whales activity Price volatility fuels speculation about a possible decisive movement. Bitcoin is consolidating at critical levels. The coming days will determine whether BTC tries to push further toward its highest level or if it corrects.
Dormant Bitcoin Movements Affect Fed Decision
According to onchain analyst Maartunn, a remarkable event just unfolded: 7,547 BTC aged between 3–5 years have moved onchain. It is not a small thing, since coins in this category are usually held by long-term investors. In the past, their sudden movements have been a sign of major market changes. Maartunn says that investors must pay close attention to the way this indicator has correlated with recent sharp price changes.
Maartunn’s analysis shows that the Bitcoin market is volatile every time a specific group of coins goes dormant. The swings may be positive or negative, but they are rarely unnoticed. When whales, who hold coins for years, start moving them around, this signals a strategic repositioning which tends to spread across the market.
This latest movement coincides with one of the most pivotal macroeconomic events of the year—the Federal Reserve’s interest rate decision, scheduled for this week. Investors will react to the Fed’s interest rate decision – whether it is 25bps or 50%bps – by adjusting their risk appetite across all assets. Bitcoin’s dormant Whale activity can amplify its impact, setting up a potentially massive price spike in days to come.
BTC is consolidating at around $115k, and the combination of macroeconomic insecurity with long-term moves by whales highlights the fragility of current market structures. Both traders and investors are preparing themselves for Bitcoin’s next major trend. This could be triggered by on-chain signal and global monetary policies.
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Test Resistance Levels: Technical Analysis
Bitcoin’s 4-hour chart consolidates around $115.555. The price is above the 100-day and 50-day moving averages, which are currently $114.341 and 112.378, respectively. This indicates a short-term upward momentum as BTC has managed to maintain higher lows since its September rally.
Sellers are defending near $116,000 where the next major resistance is located. The key resistance of $123,217, which was tested last in mid-August, could be reached if the market breaks out above this area. However, failure to break $116K increases the short-term risk, particularly with uncertainty surrounding tomorrow’s Fed interest rate announcement.
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Support is found around $114,000, aligned with the SMA 50 days. BTC could be pushed back to $112,000 if this support level is lost. This area coincides with the convergence of both 100-day SMA’s and previous demand clusters. BTC remains positive so long as BTC is above $112K.
Chart from TradingView, Featured Image from Dall E
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Source: www.newsbtc.com
