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Over the past week, BTC has remained in a consolidation range, as the king coin has been unable to maintain its upward momentum and reclaim higher resistance levels.
Therefore, CryptoQuant analyst Shayan stated that it has been hovering around $96,000, which is a critical point for STH.
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Why is $96,000 a key level for Bitcoin?
In his analysis, Shayan observed that Bitcoin's actual price within 1-3 months is $96,000.
Historically, when BTC has fallen to this level after an uptrend, it has acted as a critical support, indicating that despite the price surge, STH remain confident in their positions.
Maintaining above this critical level is crucial, as it can strengthen the bullish market sentiment, thereby increasing the likelihood of the uptrend continuing.
Conversely, if BTC fails to defend this key threshold and falls below, it could lead to a shift in market sentiment. As a result, the sentiment will turn to fear, potentially leading to a distribution phase.
Therefore, the next steps around this point will play a crucial role in shaping Bitcoin's short-term to medium-term trajectory.
Can BTC maintain above $96,000?
As BTC continues to hover around $96,000, the question is whether the king coin can maintain above this level and strengthen the bullish sentiment of short-term holders.
AMBCrypto analysis suggests that although BTC lacks upward momentum, investors remain optimistic and believe there will be another round of uptrend in the future.
For example, the BTC's Coin Days Destroyed (CDD) ratio has been declining for three consecutive days. This means that the portion of BTC transactions involving exchanges has decreased.
This trend indicates that investors are holding onto their assets rather than selling. This market behavior is typically consistent with the accumulation phase preceding a price increase.
This accumulation also appears to be strong among whales. The decline in the Wxchange Whale Ratio confirms this, as the ratio has been decreasing over the past three days.
This decline suggests that whales continue to hold BTC, as they expect the price to rise further.
Finally, Bitcoin's NUPL remains in the belief/denial zone. At this level, BTC is still in a bullish phase, climbing towards the cycle high.
With NUPL at 58%, the uptrend still has room for growth before reaching the market top.
In summary, although it is difficult for BTC to maintain above $96,000, the crypto asset still has room for growth. With more gains, the confidence of STH will be strengthened, further enhancing the bullish sentiment.
If investors remain optimistic, BTC may break through this level and challenge $98,900, before facing resistance at $100,000. However, if BTC fails to defend this level, it may drop to $94,000 and risk further downside.
