Bitcoin (BTC) is facing a period of uncertainty due to the movement of long-dormant coins amid weak market demand. Many of these coins have re-entered the market, adding potential downward pressure on BTC's price. This phenomenon typically signals market changes, but without demand, it could hurt BTC prices.
On-chain data from Lookonchain revealed that a prominent whale withdrew 250 BTC from Binance after a six-month dormancy, spiking the Age Consumed metric. Historically, reactivation of dormant BTC is seen as promising, but it needs to coincide with strong market demand to have a positive impact.
The current market is exhibiting weak demand, as indicated by Bitcoin's Chaikin Money Flow (CMF) remaining at -0.13, suggesting liquidity exit and bearish pressure. Consequently, the Bitcoin price might drop, testing support at $58,464, with a possibility of falling as low as $54,847 if sellers continue to dominate.
If there is an uptick in new demand, the re-entering bitcoins could be absorbed by buyers, which may drive the price upwards, counteracting the negative outlook. A significant surge could lead Bitcoin to reach a price point of $68,474.
