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According to on-chain data, a long-dormant Bitcoin wallet has been reactivated, leading to a staggering increase in its value.

Blockchain data tracker Whale Alert reports that "a dormant address containing 174 BTC worth $10,162,306 has just been activated after 10.6 years."

The wallet, which had been inactive for over a decade, was worth $142,600 in 2014, Whale Alert noted. Fast forward to now, and its value has soared to an impressive $10,162,306, marking a 7,049% increase.

Dormant wallets of this kind often belong to early BTC adopters, who mined or purchased Bitcoin when it was still in its infancy, thus making their reactivation a noteworthy occurrence on the market.

The activation of dormant wallets after several years of dormancy raises curiosity as to the identity of the wallet. Why did they choose to reactivate it now? Are they preparing to sell, or are they moving their holdings for security reasons?

While the identity of the wallet's owner remains unknown, the timing of the transaction and the current worth of the BTC stash have certainly caught the attention of the market. While the exact reason for the reactivation remains unknown, it might be possible that the owner is preparing to take advantage of the market, possibly selling some or all of their Bitcoin now that its value has skyrocketed.  Another reason might be a long-lost wallet whose keys have just been found.

Bitcoin's price action

Bitcoin fell for two days in a row as bears mounted an attack against the daily moving averages, the SMA 50 in particular. Bitcoin has made many efforts since Aug. 8 to surpass the daily SMA 50 at $61,556, signaling that bears are attempting to turn the level into resistance.

At the time of writing, BTC was up 0.43% in the last 24 hours to $58,423, returning to highs of $58,633 after falling to lows of $56,120 in Thursday's trading session.

If Bitcoin sustains its current rebound, the bulls might again attempt to drive BTC prices above the daily SMA 50 and 200. If they succeed, Bitcoin may begin a climb to $70,000. Bears are anticipated to vigorously protect the range between $70,000 and $73,750.

On the downside, a break and close below $56,000 might mark the beginning of a wider decline, in which Bitcoin could fall to $49,000.