Bitcoin Witnesses Mild Selloff Following a Decade-Old Address’ Transaction

Bitcoin Witnesses Mild Selloff Following a Decade-Old Address’ Transaction

The cryptocurrency community was thrown into a frenzy yesterday after an unusual 50 BTC transaction was carried out by a Satoshi-era wallet which was assumed to be dormant for over a decade. Initially, many believed that this transaction was from the elusive Satoshi Nakamoto, however, subsequent data proved otherwise. The data suggests that it was from an early Bitcoin miner or adopter.

What’s interesting to note is that the last time a transaction was made from this era of holders, Bitcoin recorded a 28% jump days later.

Satoshi is believed to own about 1 million BTC. The prospect of him/them selling this holding (in whole or part) could trigger the worst selloff in Bitcoin history and cause serious damage to the crypto industry as a whole.

Yesterday’s event triggered a sharp decline in Bitcoin which caused the crypto to shed about $500 in just an hour. This ‘mini’ selloff is believed to be an overreaction to the news, which means that Bitcoin could be in the process of seeing a steep recovery in the coming hours. Also, considering past occurrences with Satoshi-era transactions, Bitcoin is very likely to witness a massive bull run soon.

BTCUSD -Daily Chart

Bitcoin (BTC) Value Forecast — May 21

BTC/USD Major Bias: Bullish

Supply Levels: $9,500, $9,800, and $10,000

Demand Levels: $9,200, $9,000, and $8,800

The sharp decline seen yesterday—induced by the event documented in this article—has put Bitcoin in a precarious zone (below the $9,500 pivot level). BTC is trading at the $9,300 – 400 level at press time and needs to recover above the $9,550 level soon to regain its bullish momentum. Failure to recover above this line, and soon, could send BTC down to subsequent support levels.

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