Throughout the previous week, Bitcoin [BTC] has remained confined within a consolidation range, with the primary cryptocurrency failing to sustain an upward thrust and reclaim stronger resistance levels.
At present, Bitcoin continues to linger around the $96k mark, which plays a pivotal role for short-term holders, as highlighted by CryptoQuant analyst Shayan.
The Significance of $96k for Bitcoin
Shayan’s analysis indicates that Bitcoin’s realized price for the 1-3 month cohort is at $96k.
Traditionally, when BTC retraces to this point following an uptrend, it typically serves as crucial support, indicating that short-term holders remain steadfast in their positions despite the surging prices.
Maintaining levels above this critical point is essential as it bolsters the bullish market sentiment, thereby increasing the probability of an extended upward movement.
On the contrary, a failure to uphold this support at the $96k threshold may trigger a sentiment shift. Should a breach occur, market sentiment could veer towards fear, possibly leading to a phase of distribution.
Consequently, the forthcoming actions centered around this mark will significantly influence Bitcoin’s near-to-mid-term trajectory.
Will BTC Sustain Above $96k?
Given Bitcoin’s current stagnation around $96k, the pertinent query revolves around whether the cryptocurrency can uphold this level and fortify a bullish stance among short-term holders.
According to CryptoCrypto’s evaluation, despite Bitcoin’s sluggish momentum, investors remain hopeful envisaging another uptick in the future.
For instance, Bitcoin’s Fund Flow Ratio has consecutively reduced for the past three days, suggesting that a lesser proportion of BTC transactions involve exchanges.
This trend implies investor inclination towards retaining their holdings rather than engaging in sell-offs, typically aligning with the accumulation phase before price appreciations.
This accumulation trend also seems robust among large investors, with the Exchange Whale Ratio dropping over the preceding three days, signifying that whales continue to cling onto their BTC holdings in anticipation of further value upswings.
Moreover, Bitcoin’s NUPL remains situated within the belief/denial zone, at a level signifying the cryptocurrency’s bullish phase as it ascends towards peaks in the current cycle.
With NUPL hovering around 58%, there remains room for further progression in the uptrend before nearing the market’s peak.
In essence, although Bitcoin has encountered challenges in maintaining levels above $96k, there is growth potential. Subsequent advancements can reinforce the confidence of short-term holders, further solidifying the prevailing bullish sentiments.
Given the prevalent optimism among investors, Bitcoin could make strides above this threshold, aim for $98,900, and then confront resistance around the $100k mark. Nonetheless, failure to uphold this level may prompt a descent towards $94k, risking a deeper decline.