Bitcoin’s bullish momentum is reaching a critical point, with indications pointing towards a potentially significant shift in direction.
Recent activity in the market has shown a noticeable uptick in movement from previously dormant Bitcoin wallets, a trend commonly associated with strong bullish trends.
The reawakening of long-idle Bitcoin addresses has sparked speculation about the cryptocurrency’s next major move.
At the same time, important signals are emphasizing a crucial support level at $97,190, which Bitcoin must uphold for the current rally to persist.
Resurfacing of Dormant Coins
Dormant coins represent Bitcoin holdings that have remained inactive for extended periods, often belonging to early adopters or large investors who have not accessed or moved their holdings.
The movement of these previously inactive coins suggests that long-term holders may be considering profit-taking or strategic portfolio adjustments.
Historical data indicates that this reactivation coincides with key bullish phases, hinting at a potential transition towards the final stages of the bullish cycle.
An analysis of the data demonstrates this pattern, showcasing a resurgence in activity among previously untapped coins. This trend tends to align with Bitcoin’s most significant price surges.
While Bitcoin’s price has steadily climbed in recent months, heading towards new record highs, previous market cycles suggest that the final stretch of a bullish period often brings heightened volatility.
If dormant BTC holders start offloading their holdings in substantial quantities, this could introduce temporary downward pressure before the market resumes its upward trajectory.
$97,190 as a Critical Level for Bitcoin’s Bullish Trends
Analyst Ali Martinez has highlighted $97,190 as a pivotal support level for Bitcoin. On-chain data reveals that this threshold represents a significant accumulation of BTC.
Around 1.45 million addresses acquired Bitcoin between the price range of $95,772 and $98,719, totaling 138k BTC.
If Bitcoin manages to stay above this threshold, the upward trend is likely to persist as holders in this range are disinclined to sell at a loss.
However, a breach below this level could prompt a substantial sell-off from these investors, potentially leading to a more significant market correction.
Therefore, the $97,190 mark holds psychological and technical significance in the upcoming weeks.
Market Trends and Crucial Resistance Levels
A review of Bitcoin’s price performance reveals a clear uptrend, characterized by higher highs and higher lows.
At the time of writing, Bitcoin was trading at $100,733, encountering minor hurdles within the price range of $104,000–$108,000.
A decisive breakout above these levels could pave the way for a new phase of price discovery, potentially setting sights on $120,000 and beyond.
In contrast, if Bitcoin struggles to breach these resistance levels and loses momentum, a short-term retracement towards $97,190 could be on the horizon.
A dip below this threshold might test lower support areas around $92,000 and $88,000, where substantial buying activity typically occurs.
As the market observes Bitcoin’s price movements, the upcoming direction remains uncertain.