Bitcoin Holds Above $95,500 Key Supply Cluster

Bitcoin's price has been maintaining a steady position above a crucial supply cluster ranging from $95,500 to $97,000, as indicated by the latest update from Glassnode’s BTC CBD Heatmap. This range is particularly significant as it marks the first dense supply cluster below the short-term holder cost basis, which is currently at $98,000. The convergence of demand and holder positioning in this range is viewed as a critical threshold in the current market structure.

Sustaining price action above this range is essential for supporting the broader bullish trend. If Bitcoin can maintain its position above $95,500, it could continue its upward trajectory, potentially reaching $111,000 and beyond. Conversely, a sustained breakdown below this cluster could signal the start of a more extended bearish phase, both in the mid-term and long-term outlooks. The heatmap reveals heavy on-chain volume accumulation in this region, emphasizing its importance as a battleground for market sentiment.

Market participants are closely monitoring the situation, looking for confirmation of support or signs of weakness that may lead to increased sell-side pressure. If bulls successfully defend this zone, Bitcoin may continue its recovery trajectory. Conversely, a drop below $95,000 could put short-term holders underwater, intensifying downside volatility. The current price hovering just above these levels adds to the uncertainty, making this a critical juncture for Bitcoin's price movement.