I mean, there obviously is a correlation: many people buy low and hodl their coins until price booms. That's why with price bumps you see dormant addresses waking up. This doesn't necessarily mean that with more addresses waking up, the price is going to crash drastically though - it's mostly still just speculation.
The red part of the chart could go up 20% more and only then have a drastic price crash. It just adds to the entire, exhaustive list of price influencing factors of BTC. I personally wouldn't rely on it.
Yes , totally agreed , but at the same time I would like to address an issue that Arrises because of this fact , apparently the Whales tries and generates false alarms by sending Bitcoins from one wallet to another , which in-turn causes panic for the newbies and to other people.
This is something that is more or so used by the bulls to scare the investors , make them panic sell/buy then encash when the time is right for them , therefore I won't ask you to ever follow these things .
You can actually check the market price every now and then and then make a suitable investment, because at the end of the day , literally no one can predict what is going to happen in the market .
I do think in the upcoming years we will have *competition* as a major factor for determination of the market price , we do need certain updates for the same , I do hope we solve the issues with the lightning network .
People often read stories about how people became billionaires overnight band all and then come and Invest in Bitcoins , cannot wait for long and then at the end of the day complain here , remember some of those people waited from 2009 all the way till 2017 .
_Patience is the Key_
