Bitcoin Trader Nets 12,800% Profits after Holding BTC for 10-Years

Bitcoin Price Rejects $65k as Long-Term Holders Cash-Out

Bitcoin price hit $64,799 on Wed Sept 25, 2024, up 12% since the Fed Rate cut announced on Sept 18. On-chain data shows a long-term Bitcoin holder netting 12,800% profits after activating a 10-year dormant wallet.

Could this trend put BTC price rally at risk in the week ahead?

Bitcoin Trader Turns $12k into $1.6M after Holding 25BTC for 10-Years

Bitcoin’s price continues to show strength as macroeconomic conditions turn favorable, particularly following the US Federal Reserve’s 50bps interest rate cut on September 18. Long-term holders are beginning to cash out, taking advantage of the rally.

A dormant address containing 24 BTC, valued at $12,367 in 2014, has just been activated, with it holdings now worth $1.596 million.

On-chain data from WhaleAlerts.io highlights the remarkable 12,800% profits the trader made by simply holding Bitcoin through a period of 10 years and 3 months.

As depicted above, the transaction involved 24 BTC, which was moved to an active address, suggesting the holder might be locking in some of their $1.596 million gains.

This signals growing intent among Bitcoin long-term traders to book profits as BTC approach milestone price levels.

At the time of writing on Sept 25, Bitcoin is trading at $63,600, retracing 2% after briefly touching $64,799. Evidently, large-scale profit-taking observed among long-term holders, may have contributed to the price rejection from the $65,000 level, in the early hours of Wednesday.

New Long-term Buyers Emerge as Exchange Outflows Hit $1.5 Billion

While long-term holders spotted booking profits may have triggered a mild-correction on Sept 25, Bitcoin’s bullish prospects remain firm. A deeper inquest into broader market data shows that Bitcoin continues to attract new buyers leaning towards long-term investment.

CryptoQuant Exchange Reserves chart below further emphasizes this narrative.

Bitcoin traders held a total of 2.59 million BTC on exchanges and trading platforms as of Sept 18. But since the Fed rate cut, the supply on BTC held on the trading platforms as declined considerably.

At the time of writing on Sept 25, the BTC exchange reserves now stands at 2.578 million BTC, reflecting a decline of 18,000 BTC within the past week.

And Exchange net outflows of 18,000 BTC could be interpreted as a bullish signal for 2 major reasons. First, it means buyers moving coins into long-term storage, far outpace dormant wallets looking to book profits.

This signals overwhelming positive sentiment among current market participants that Bitcoin’s post Fed rate cut price rally will advance further.

Bitcoin Price Forecast: Bulls Must Hold $60k Support

After briefly touching $64,799, Bitcoin retraced to $63,590, suggesting a minor pullback. The Bollinger Bands show crucial resistance at $66,416 and strong support at $59,865.

Holding above this support is vital for bulls to regain control and push toward the next resistance at $67,500.

The MACD line (774.44) remains comfortably above the signal line (550.52), indicating a sustained bullish trend, but the flattening histogram signals momentum may be cooling off.

A breakdown below $59,865 could trigger a deeper correction, potentially to $53,314. However, if the support holds until the end of the daily trading session, Bitcoin is poised to resume its upward trajectory, with a chance to test $67,500 on the next leg-up.