Bitcoin Hovers at $96K: Bullish Momentum Hangs in Balance

Bitcoin, the world's leading cryptocurrency, has experienced a 1.04% surge over the past day. To maintain its bullish momentum, it is crucial for Bitcoin to hold above the $96,000 mark. Over the past week, Bitcoin has been stuck within a consolidation range, failing to maintain an upward momentum and reclaim higher resistance levels. As a result, it has been hovering around the $96,000 mark, making it a critical point for short-term holders (STHs), according to CryptoQuant analyst Shayan.

Shayan observed that Bitcoin's realized price for the 1–3 month cohort sat at $96,000. Historically, when Bitcoin declines to this level after an uptrend, it acts as critical support, suggesting that STHs are confident with their positions despite the surging prices. Holding above this key level is crucial as it reinforces bullish market sentiment, thus increasing the likelihood of an extended upward trend. Conversely, if Bitcoin fails to hold this support at this critical threshold and breaks below, it could cause a shift in sentiment, leading to a distribution phase. Therefore, the next move around this point will play a key role in shaping Bitcoin's short to mid-term trajectory.

With Bitcoin remaining stuck around $96,000, the question is whether the king coin can hold above it and reinforce bullish sentiment among short-term holders. According to AMBCrypto's analysis, although Bitcoin lacks upward momentum, investors are optimistic and believe another leg up is ahead. For example, Bitcoin's Fund Flow Ratio has declined for three consecutive days, implying that a smaller portion of BTC transactions involve exchanges. Such a trend suggests that investors are holding their assets rather than selling, often aligning with the accumulation phase before prices rise. This accumulation also appears to be strong among whales, as the declining Wxchange Whale Ratio has dropped over the past three days, indicating that whales continued to hold BTC as they anticipated further price gains.

Finally, Bitcoin's NUPL still remained within the belief/denial zone, suggesting that BTC was still in a bullish phase, climbing towards cycle highs. With NUPL at 58%, the uptrend still has room for growth before reaching the market top. In conclusion, although Bitcoin has struggled to hold above $96,000, the crypto still has room for growth. With more