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The volume of on-chain transactions involving Bitcoin has recently skyrocketed, reaching a staggering $37.4 billion in just one day. This is the largest increase since March 12th. When driven by dormant whale activity, as Lookonchain’s insights demonstrate, this level of activity typically signals underlying market dynamics that are worth monitoring closely.
Large holders are in action, as seen in the $15.6 million movement from Binance recorded on the trading index. This is an example of a dormant coin being returned to circulation. This often corresponds to large fluctuations in the price of Bitcoin, so it can be a precursor to a price increase.
BTC/USDT chart by TradingView
Based on past experience, this type of volume, when combined with older Bitcoin holdings re-entering the market, usually indicates that bullish momentum could build in the near future. According to market data, Bitcoin appears to be consolidating around the $62,000 range as multiple key moving averages provide support and resistance levels.
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The sudden spike in price and increased trading volume indicates that Bitcoin may be preparing for a bigger move in the market, possibly testing the $65,000 level again. This is especially important given that a surge in on-chain transactions is typically preceded by significant price movements, whether positive or negative. Despite this amount, Bitcoin volatility still exists.
The $65,000 resistance level remains an important line to watch as traders try to determine whether this inflow will create sustained upward pressure or just a temporary rally. If this breaks, a bigger move could occur, but if the current support is broken, Bitcoin could fall to the mid-$50,000s.
