According to reports, one of the most significant Bitcoin wallets, which had been dormant for a long time, made a surprising move this week, purchasing 250 Bitcoin for about $26.37 million. This is the first time this wallet has recorded activity in two years.

The purchase has sparked controversy among both traders and blockchain analysts. Some see it as a signal that major players are preparing for more moves in the upcoming weeks.

The whale's return after two years

According to Lookonchain data, the whale withdrew 500 Bitcoin from Gemini in 2022 when the price of Bitcoin was around $27,400, which was worth about $14 million at the time. Now, with the price of Bitcoin approaching $105,000, the whale's holdings are realizing unrealized gains of over $39 million.

This kind of profit margin is noteworthy. Other major investors often closely monitor these movements. They wonder if this is the beginning of a broader trend or just an individual adventure.

Significant gains in early betting

Early users have witnessed a massive increase in the value of Bitcoin over the years. This whale's withdrawal in 2022 came just before a price boom that lasted for years. Since then, the value of Bitcoin has increased by nearly 300%.

Not everyone can make such moves. Retail investors often feel left behind when a wallet of this size converts its assets. However, some traders say this could create a wave of optimism. When major investors buy, individual traders sometimes ramp up their investments, seeking the same gains. Technical indicators show mixed signals.

On the charts, Bitcoin appears to be forming an inverted cup and handle pattern, with a prominent neckline at $100,800, which represents key support. The price has reached the handle level, and a drop below $100,800 could push Bitcoin to $91,000, coinciding with its 200-day exponential moving average (EMA).

The Relative Strength Index (RSI) for Bitcoin is 52, indicating that upward momentum is fading. A drop below 50 could increase selling pressure. For bulls to regain control, Bitcoin must reclaim the 20-day exponential moving average resistance level, which is just above $105,000. Market volatility and liquidation saw Bitcoin prices experience sharp movements last week, partly driven by the social media battles between U.S. President Donald Trump and billionaire Elon Musk. The price of Bitcoin briefly fell below $101,000, causing liquidations nearing $1 billion in futures markets, before recovering to exceed $105,000 within hours.

A capitulation signal for the metal has also been detected by CryptoQuant's Hash Ribbons indicator, indicating near-term pain for the worst-off miners, but there may be some potential rallies in the future once they surpass this phase.

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