80,000 Dormant BTC Moved On-Chain At $108,000

Bitcoin has recently experienced significant market activity, with approximately 80,000 dormant BTC coins moving on-chain at a price of $108,000. This movement has sparked intense speculation and debate among investors and analysts. The market is now closely watching whether this activity signals a strategic repositioning by smart money or the early signs of distribution.

Just a month ago, Bitcoin achieved its highest monthly close at $110,247, a level that quickly became a strong resistance point. As of July, Bitcoin is once again testing this key threshold. However, the structure behind this move has shifted. Unlike the previous rally, which was driven by four explosive green candles, this retest has been characterized by a slow, methodical grind from the $98,000 "dip" over the past two weeks. This gradual approach has led to increased investor patience, raising questions about whether fear of missing out (FOMO) will ignite the next breakout or if greed will trigger another premature top.

On July 4, around 80,000 BTC were moved on-chain at $108,000 by addresses that had been dormant for five years. This activity coincided with Bitcoin's realized profits spiking to a yearly high of $9.2 billion. Despite the scale of this profit-taking, Bitcoin closed the day with a drop of just 1.41%, indicating strong market resilience. Spot demand has been robust, with over $1.3 billion flowing into BTC ETFs in July alone, which likely absorbed the sell-side pressure.

Despite the significant market activity, the sentiment has not overheated. Even during last month’s push to $110,000, the Fear & Greed Index peaked at just 64, suggesting the rally lacked the emotional blow-off typical of market tops. However, Bitcoin pulled back on the charts, leading some to speculate that smart money may be tactically offloading into strength, flipping the classic “buy fear, sell greed” playbook. If this is the case, it could indicate a liquidity trap unfolding at resistance rather than a breakout setup.

The latest movement of 80,000 BTC has divided market consensus. Some interpret it as a calculated smart money shakeout, injecting volatility near the resistance to trigger retail exits and reload at lower bids. During Bitcoin’s last rejection at $110,000, whale address counts turned negative, with the 30-day change dropping by 26 in just ten days. This drawdown synced perfectly with Bitcoin’s slide to $98,000 on the charts. Following this, whales re-entered aggressively, driving the count back up to 2,008. In previous cycles, this kind of accumulation has aligned with smart money buying fear and offloading into retail-driven euphoria, rather than into strength. If this divergence persists, it may point to one more liquidity flush—a tactical shakeout before Bitcoin can mount a sustained breakout above the $110,000-$111,000 resistance wall.