Bitcoin liveliness hits new cycle highs as dormant supply reactivates
Bitcoin’s on-chain liveliness metric — which measures spending versus holding adjusted for coin age — has reached new cycle (all-time) highs in 2025, driven by large-scale reactivation of long-dormant coins and billions of dollars in on-chain transactions, according to Glassnode and on-chain analysts. Analysts cited include James Check and technical commentator TXMC. Liveliness typically rises in bull markets as older supply circulates and new capital rotates; current peaks reportedly exceed those seen in 2017. Price action has been consolidating around roughly $86,000–$92,000 (spot ~ $89k), with limited intraday volatility. Traders identify $92,000 as the key resistance whose decisive break could spark a breakout, while failure to clear it may prompt a retest of the low-$80,000s and potentially form a double bottom. Key takeaways for traders: elevated liveliness signals sustained on-chain demand and capital rotation beneath muted spot action; transaction values are far larger than in prior cycles (billions vs. thousands); monitor $92,000 resistance and low-$80k support for near-term trade setups and risk management.
Bullish
Elevated liveliness points to substantial on-chain demand and reactivation of previously dormant supply, a behaviour historically associated with bull markets. The metric rising to new cycle highs — together with reports of billions in transactional value — implies significant capital rotation and distribution that can feed into upward price pressure once spot momentum resumes. In the short term, the market may remain range-bound as price consolidates between $86k and $92k while on-chain activity continues; this creates both breakout and failure scenarios. A decisive break above $92,000 would likely accelerate buying and validate the bullish on-chain signal, prompting momentum-driven longs and a potential sharp rally. Conversely, failure to break could trigger profit-taking or a retest of low-$80k support, offering a lower-risk accumulation zone for longer-term traders. Overall, the net effect is bullish for BTC because the underlying on-chain flows indicate demand and capital rotation larger than prior cycles, increasing the probability of upward price continuation once technical resistance is cleared.