Bitcoin (BTC) Bulls Target $100,000 After Pushing Upward from Just Below $97,000

Bitcoin bulls are pushing upward from just below the $97,000 level as they aim to validate a breakout beyond a recent multi-day consolidation. After struggling near $95,000 for over a week, Bitcoin surged to $97,000 before reversing, forming a fair value gap.

The crucial question is whether this momentum will sustain and reach the $100,000 mark.

Critical Support Level Tested: $95,000 Holds Key

The digital currency is now testing the key level of $95,000. Crypto analyst Ali says that if the price level does not hold, the market might pullback toward $92,000. Traders are observing closely as breaking below $95,000 may spark further downside traction, and the short-term direction is at stake.

The price of Bitcoin is trading around $94,283, slightly below the multi-month highs above $97,000. This action is reflective of mid-April where the cryptocurrency stabilized at about $86,000 before surging almost $10,000. The market action recently has created what is interpreted by the market as an area of fair value between $94,200 and $95,000.

Support Between $91.5K and $92K Identified

Technical analysts have identified a significant support zone between $91,500 and $92,000 based on the 20-day exponential moving average. As long as BTC remains above this level, the path toward the psychologically significant $100,000 threshold remains clear.

The relative strength index (RSI) is still in the green, indicating that the buyers are still in command despite recent weekend pullbacks. BTC is also witnessing higher network usage, with the highest number of active addresses in six months.

The surge in usage and bull trends in the price movements corroborate the bullish case for Bitcoin. The data on liquidations indicates that high shorts are found around the $96,500-$97,000 zone, which makes for potential volatility should the prices reach these points.

Alphractal Highlights Bitcoin Price Resilience

Crypto analytics platform Alphractal has provided insight into why Bitcoin’s price remains resilient despite modest blockchain activity. According to the firm, Bitcoin’s recent price rise is driven more by capital inflows from US spot exchange-traded funds (ETFs) than by blockchain usage, marking a significant shift in the market dynamics since January 2024.

Alphractal pointed out that the comparatively low volatility of the price of BTC has led to lower network usage because brokers are less motivated to establish new positions. The price has also been sustained by speculative investors leveraging derivatives and financial instruments, which has meant that there has not been widespread use and there is little demand on the BTC network.