Bitcoin Price Consolidates Near $108,000 Amid Dormant Coin Activity

Bitcoin's price has been consolidating along a rising support line, maintaining higher lows despite a rejection at $109,000. The key support levels to watch are $107,000, $103,343, and the psychological $100,000 mark. On the resistance side, $109,000 is a critical level, and a breakout above this could open the path to $112,000 and beyond. The Relative Strength Index (RSI) is currently neutral at 47.14, showing mild bearish divergence, which suggests short-term caution. If the ascending trendline holds, a breakout above $109,000 becomes increasingly likely. However, if it fails, $103,000 or even $100,000 could be retested quickly.

In the short term, Bitcoin's price is caught between consolidation and breakout. If buyers defend the trendline and the RSI begins to rise back above 50, we could see a retest and breakout above $109,000. This would shift momentum bullish again, targeting $112,000–$115,000 by mid-July. However, if the ascending support breaks with strong volume, the $103,343 level becomes a magnet, and the market could slide further to the $100,000 psychological zone—a classic support flip area. The market is currently watching whether whales continue buying dips and if retail panic selling increases after the 80,000 BTC wallet scare. As of now, smart money is still in accumulation mode, which is a positive signal.

Bitcoin's price has shown signs of hesitation near the $108,000 mark, despite a strong bullish trendline. This uncertainty comes amidst significant movements of dormant Bitcoin, with over 80,000 BTC, which had been inactive since 2011, being transferred in two large transactions. The coins, initially acquired when BTC traded below $1, were moved on July 4, raising concerns about a potential market dump. The largest shift of dormant Bitcoin in over a decade caused a ripple effect across the market, with traders fearing that such a massive stash entering circulation could spark a correction. In response, long positions were unwound, and shorts piled in around the $110,000 resistance level, causing the price to slip nearly 2% within hours, from $110,000 to $107,600.

Despite the initial shock, the fact that the BTC was not sent to exchanges suggests an internal wallet reorganisation rather than a coordinated sell-off. This event highlighted the sensitivity of market sentiment, particularly when Bitcoin hovers near key psychological and technical resistance zones. The movement of these dormant coins has led to a dual narrative in the market: short-term caution versus long-term optimism. Analysts suggest that this dual narrative will likely keep BTC consolidating as markets digest the implications of dormant coin activity.

Technically, Bitcoin is clinging to support at $108,035 after failing to break above $110,413. Price action on the 2-hour chart shows consolidation above a key ascending trendline and just below the 50-period EMA ($108,250). A bearish divergence in the MACD histogram hints at weakening upside momentum. Unless BTC breaks below $107,325, the structure remains intact. A bounce from the current zone could reignite trade momentum. For a Bitcoin price prediction, the next 48 hours will be crucial, as a break below the trendline support would invalidate the uptrend. However, if the $108K level holds, this remains a classic “buy-the-dip” scenario in a structurally bullish setup.

The long-term outlook for Bitcoin remains bullish, buoyed by liquidity forecasts. According to the analyst's forecast, Bitcoin could hit fresh all-time highs by late 2025, driven by strong global liquidity and dovish monetary policies. He emphasized that Bitcoin remains highly responsive to changes in liquidity, and with central banks likely to loosen financial conditions into 2025, risk assets like BTC stand to benefit. He also pointed to improving sentiment in U.S. equities, suggesting broader risk-on appetite could return. This long-term optimism contrasts with the short-term caution sparked by the recent movement of dormant coins, creating a complex market dynamic for Bitcoin.