Analyst Explains Massive Bitcoin Move: 3K BTC Looks Like 32K

Bitcoin is dealing with a crucial check after a pointy however modest correction from its all-time highs, falling from $126,000 to round $120,000. While bulls stay in charge of the broader development, market sentiment is beginning to present indicators of uncertainty, with some analysts suggesting that Bitcoin might be nearing a cycle prime. Others, nonetheless, keep a extra optimistic view, arguing that the market remains to be in value discovery mode and getting ready for one more leg greater.

Amid this debate, prime analyst Darkfost has cautioned buyers a few current wave of deceptive onchain interpretations. Reports circulating throughout social media claimed that over 32,000 BTC, value practically $4 billion, moved onchain from wallets dormant for 3–5 years. However, Darkfost clarified that this data is wrong and stems from a misunderstanding of Bitcoin’s UTXO (Unspent Transaction Output) mechanism.

He explains that whereas it seems as if tens of hundreds of BTC have been moved, the precise quantity transferred was far smaller, brought on by how Bitcoin’s transaction construction data activity. Darkfost’s clarification serves as a reminder to method sensational onchain information with warning — particularly throughout risky market phases when worry and euphoria can distort evaluation.

Analyst Clarifies Misleading Whale Movement Data

Darkfost make clear the confusion surrounding the reported motion of 32,000 BTC from wallets that had been dormant for years. He explains that the whale concerned — recognized as the identical dealer who just lately bought BTC on Hyperliquid to purchase ETH — solely moved 3,000 BTC, not 32,000.

The confusion arises as a result of the whale’s authentic UTXO contained 32,321 BTC, which had been inactive for over three years. Since Bitcoin’s UTXO system doesn’t enable partial spending, the whole output needed to be spent to maneuver simply the three,000 BTC. After the transaction, the pockets nonetheless holds 29,321 BTC, which means that solely about 10% of the entire stability really modified palms.

Darkfost confirmed that this explicit tackle hadn’t proven any outflows in years, including to the intrigue. While giant dormant wallets turning into energetic can generally sign promoting strain, he emphasised that the onchain information should be interpreted fastidiously to keep away from exaggerating market exercise.

In this case, the supposed “huge transfer” was merely a technical artifact of Bitcoin’s transaction construction, not a sign of large-scale promoting. Still, analysts and merchants are preserving a detailed eye on comparable actions, as reactivated whale addresses can generally precede market volatility. Darkfost’s clarification serves as a helpful reminder that context and technical understanding are important when analyzing on-chain information — particularly in occasions when misinformation can simply gas panic or hypothesis throughout the crypto market.

Bitcoin Holds Key Support After Sharp Pullback

Bitcoin is at present buying and selling round $122,700, displaying resilience after a pointy correction from its all-time high close to $126,200. The 4-hour chart reveals that BTC efficiently held above the $120,000 assist zone, suggesting that consumers proceed to defend key ranges regardless of short-term volatility. The yellow line at $117,500 stays a vital degree — beforehand a resistance — now performing as the principle structural assist in case of additional draw back.

The short-term transferring averages (blue and pink traces) present that the value stays above each the 50-period and 200-period transferring averages, confirming a bullish construction. The current bounce from $121,000 aligns with sturdy demand absorption, which regularly precedes one other upward try. If Bitcoin breaks above $124,500, it might sign renewed momentum towards retesting the $126,000 ATH, doubtlessly main to cost discovery.

However, a rejection close to present ranges might result in a deeper retest towards the $120,000–$118,000 vary, the place the subsequent consolidation section might type. Overall, the chart signifies that Bitcoin’s uptrend stays intact, however bulls want a decisive shut above $125,000 to substantiate continuation. The market seems to be in a wholesome pause after a steep rally, getting ready for its subsequent decisive transfer.

Featured picture from ChatGPT, chart from TradingView.com