Awakening of Sleeping Bitcoin Wallets – A Positive Sign for BTC?

Key Points

• Bitcoin’s bull market is at a critical point, with reactivated lost coins suggesting a major turning point.
• A crucial support level at $97,190 could determine Bitcoin’s next movements.

Bitcoin’s bull market is at a critical stage with indications that a significant turning point may be imminent.

In the past few months, there has been a significant increase in activity as previously dormant Bitcoin addresses have become active again. This often happens during strong bullish trends.

Reactivation of Lost Coins

The term “lost coins” refers to Bitcoins that have been inactive for years, often held by early investors or whales who either forgot or chose not to move their assets. When these coins start moving again, it suggests that long-term holders may be preparing to adjust their positions or take profits.

Historically, this reactivation has coincided with major bullish phases, indicating a potential shift towards the final leg of the bull run. Data shows how lost coins are becoming active again, a behavior that has consistently coincided with Bitcoin’s most explosive price runs.

Crucial Support Level

Crypto analyst Ali Martinez has highlighted $97,190 as a crucial support level for Bitcoin. On-chain data shows that this level represents a significant cluster of Bitcoin holdings. Approximately 1.45 million addresses acquired Bitcoin between $95,772 and $98,719, with a total volume of 138k Bitcoin.

If Bitcoin remains above this zone, the uptrend is likely to continue, as these holders are unlikely to sell at a loss. However, if Bitcoin breaks below this level, it could trigger a wave of selling pressure from these investors, leading to a steeper correction.

At the time of writing, Bitcoin was trading at $100,733, facing minor resistance in the $104,000–$108,000 range. A breakout above these levels could open the door to a new price discovery phase, with Bitcoin potentially targeting $120,000 and beyond.

On the other hand, if Bitcoin struggles to break resistance and loses momentum, we could see a short-term pullback towards $97,190. A break below this level might test lower support zones around $92,000 and $88,000, where large buying interest exists.

All eyes are currently on Bitcoin’s price action, as the market decides its next move.