Bitcoin broke below the $108,000 level Thursday as 80,000 BTC from long-dormant wallets suddenly moved on-chain. Traders reacted fast, fueling speculation around Satoshi Nakamoto and triggering a wave of liquidations.
📕 What Happened:
On July 4, Bitcoin (BTC) fell to a daily low of $107,564, down 1.6% on the day. The price slip came shortly after eight wallets—each holding 10,000 BTC and inactive for 14 years—began making on-chain transactions.
These wallets, holding early-mined BTC likely from 2009–2010, were reactivated for the first time since Bitcoin’s earliest days. Together, they moved a total of 80,000 BTC, currently worth over $8.6 billion.
The transfers raised immediate red flags across crypto markets. With no Wall Street activity due to the U.S. Independence Day holiday, traders were left to react in a thinly traded market, worsening volatility.
The identity behind the wallets remains unknown. But speculation quickly emerged online, with some linking the event to Bitcoin creator Satoshi Nakamoto. No evidence backs that theory, yet the mere possibility weighed on sentiment.
📊 Market or Technical Insight:
The BTC/USD pair failed to hold above the $110,000 resistance, dropping below the key $108,000 support, a level flagged by several analysts as a make-or-break line for bulls.
Data from CoinGlass shows Bitcoin eating through long-side liquidity while short positions are stacked above $110K. A visible build-up of short interest hints at possible liquidations if the price rebounds sharply.
The trading account TheKingfisher highlighted an increase in “toxic order flow”—trades that result in losses for market makers—signaling chaotic execution and possibly panic selling.
Meanwhile, analyst Rekt Capital noted that Bitcoin may be losing a major diagonal support trendline on the daily chart.
“Bitcoin is losing the diagonal for the moment,” he said.
“But if the daily price closes above the diagonal, then this will have ended as a downside wick as part of a volatile retest. Upcoming Daily Close will be pivotal.”
In short: bulls must reclaim that trendline fast to prevent a deeper retracement and preserve the current macro breakout.
📈 Investor Angle:
For traders, the key short-term risk is further downside below $107K. If the coin transfer leads to even partial selling, it could pressure the price toward $104K–$105K, where previous support lies.
Whale activity often causes chain reactions—especially when linked to historic wallets. If large sell orders hit the books, even smaller holders may rush to exit, accelerating the fall.
Long liquidations are also in play. As more traders pile into leveraged shorts, any bounce could trigger a sharp move upward, squeezing those positions.
🔚 Conclusion:
Bitcoin’s next move hinges on whether the market shrugs off the dormant wallet scare—or whether real selling follows.
With key daily closes ahead and traders watching resistance at $110K, the question now is clear: Was the incident just a ghost from the past—or a trigger for the next big sell-off?
