Bitcoin (BTC) Stalls Below $96K As On-Chain Activity Picks Up

Bitcoin is now trading at a critical inflection point, hovering just below the $96,000 resistance after a strong recovery last week.

Bitcoin (BTC) price stalled below the $96,000 on Monday, with the next few trading sessions likely to determine whether a decisive breakout or a breakdown will follow.

The flagship cryptocurrency is now consolidating just below the critical resistance at $96K, which bulls need to clear to confirm a new leg of the uptrend. A breakout above the $100,000 psychological level would be required to signal a true euphoric phase in the market.

Bitcoin stalls below $96K as on-chain activity picks up

At press time, BTC was trading at around $94,900, down 0.4% over the past 24 hours. The largest cryptocurrency had recovered sharply last week, surging 12% as it bounced off the lower demand zone at $90,000.

However, that momentum appeared to be fading as buyers failed to push the price decisively above the $96K level. A sustained move above this zone could open the door for a continuation of the rally towards the $100K mark, which traders have been anticipating throughout the year.

On the other hand, if Bitcoin fails to push higher soon and loses the $90,000 support zone, then analysts warn that a sharp drop toward lower levels could quickly follow. Holding above $90K will be crucial for sustaining bullish momentum and preventing a deeper correction in the short term.

On-chain data from IntoTheBlock showed that the number of active Bitcoin addresses spiked sharply yesterday, reaching over 800,000.

While still below historical highs, this surge signaled a notable increase in activity, which is often an early indicator of renewed market demand and growing participation from traders and investors.

As BTC now coiloed within a narrow range, all eyes were now on whether buyers can step in with enough strength to reclaim the $96K level—or if selling pressure will take control and push prices lower.

Bitcoin consolidates as network activity rises

Bitcoin price is currently consolidating at a critical inflection point, hovering just below the $96,000 resistance after a strong recovery last week.

After a 12% surge helped bulls regain short-term control following a test of the $90,000 support, a decisive breakout above $96K is needed to confirm a true euphoric phase and extend the rally. Until then, BTC faces limited upside potential and may remain range-bound.

However, Bitcoin is showing signs of resilience with healthy retests of demand zones between $90K and $92K, which have so far held and underpinned the bullish sentiment. As long as these levels hold, a push toward higher levels remains on the table.

But macroeconomic headwinds persist, with geopolitical tensions—notably the unresolved trade conflict between the U.S. and China—and concerns over a potential global recession continuing to weigh on risk assets. A negative macro surprise could derail Bitcoin's upward trajectory quickly.

Still, one encouraging signal comes from the blockchain itself, with IntoTheBlock data showing that Bitcoin's network activity is rising again.

The number of active addresses surged past 800,000 yesterday, although still below peak levels. This spike suggests renewed engagement and a possible return of retail interest, which is a historically bullish sign when paired with strong price action.

The next few days will be crucial to observe whether bulls can reclaim momentum and push towards $100K, or if external risks will trigger a deeper pullback and test lower support levels.

For the past several days, Bitcoin has been consolidating in a tight range between the $92,000 and $96,000 support and resistance levels. This consolidation has kept traders on edge as they await a decisive move that could determine the next leg of the trend.

To confirm a continuation of the broader rally, bulls need to break above this consolidation zone and push towards the psychological milestone of $100,000. However, without a strong breakout above $96K, the move could lose steam and remain range-bound in the short term.

The absence of a clear catalyst, whether macroeconomic or technical, could lead to continued sideways action and increased volatility within this narrow band.

On the downside, if BTC loses the $91,000 support, then a drop towards the $87,500 area is likely, where the 200-day moving average and previous demand zones converge.

This level would serve as a critical support test and could ultimately decide whether the current trend maintains its bullish structure or shifts into a corrective phase.

Overall, BTC remains at a crossroads: a breakout above $96K could herald a continuation of the rally and open the door for a move towards $100K, while a breakdown below $91K could force a retest of deeper levels