Bitcoin Tests $96.5K Resistance Amid Bullish Indicators

Bitcoin's recent price action has shown signs of a robust recovery, with the cryptocurrency testing key resistance levels that could signal further upside potential. At the time of reporting, Bitcoin was trading at $96,398.33, down 0.36% over the last 24 hours, but its overall momentum remains bullish. The cryptocurrency has been testing the $96.5K level, a crucial resistance zone that, if broken, could trigger a significant breakout.

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One of the key indicators supporting this bullish outlook is the surge in Open Interest, which reflects renewed market participation. This increase in Open Interest mirrors historical bullish setups where rising open interest has preceded strong price action. Importantly, Funding Rates have remained balanced, and data from major exchanges shows that shorts are in control, indicating a healthy, two-sided market without signs of excessive leverage buildup.

The supply-side dynamics also suggest a favorable environment for Bitcoin's price stability and potential upside. Bitcoin’s Exchange Reserve has declined to $238.31 billion, reflecting a 0.67% drop. This decrease indicates that investors are increasingly moving BTC off exchanges, typically a bullish signal tied to reduced sell-side pressure. Additionally, the netflow stood at -4.33K BTC, reflecting a +2.45% shift toward outflows. This shift in reserve and netflow structure highlights growing accumulation behavior, signaling that fewer coins are available for immediate sale.

Network engagement is also on the rise, with Daily Active Bitcoin Addresses spiking to 924.55K, among the highest levels this year. This uptick reflects increased blockchain activity and broader interest in Bitcoin transactions, signaling strong organic network usage rather than purely speculative volume. Historically, higher Active Address counts have accompanied sustained bullish phases, lending further support to the current recovery narrative.

Profitability is returning to the market, but not at worrying levels. The MVRV Z-score climbed to 2.42, marking a significant recovery from its March lows. While this level suggests that holders are becoming more profitable, it remains below the danger zone historically associated with major tops. This metric indicates a balanced market state, where prices can rise without triggering aggressive selling from overextended holders.

Technical indicators also support the bullish outlook. The RSI read 68.30—near overbought, but not yet overheated. If Bitcoin flips the $96.5K–$97K range into support, a breakout toward previous highs may follow. However, failure to sustain above this level might result in short-term consolidation before the next major move.

Given the healthy rise in Open Interest, easing Exchange Reserves, and growing network activity, Bitcoin’s current rally appears fundamentally supported. The MVRV ratio confirms that the market is not yet overvalued, while technical indicators point to a potential breakout. Therefore, Bitcoin looks well-positioned to sustain its momentum if it successfully breaches the $97K resistance zone in the coming days, potentially paving the way for a $100K breakout.