Bitcoin is currently holding above $96,000, maintaining a key support level that analysts say could determine its next move.
While the cryptocurrency recently dropped from $100,000 to $92,000, it has now stabilized, raising questions about whether it can continue its upward trend.
Why Is $96,000 Important for Bitcoin?
According to an analysis by ShayanBTC on CryptoQuant, the Realized Price of Unspent Transaction Output (UTXO) age bands shows that short-term Bitcoin holders (those who have held BTC for 1-3 months) bought their coins at an average price of $96,000.
Historically, Bitcoin has used this realized price as a strong support level, meaning that many investors might increase their positions when BTC is near this price.
If Bitcoin stays above $96K, it could signal confidence in the market, increasing the chances of an extended bull run.
However, if Bitcoin falls below $96,000, it could weaken investor sentiment, possibly leading to increased selling pressure and further declines.
Bitcoin Price Outlook
As of now, Bitcoin is trading at around $96,500, showing little movement in the past 24 hours.
The cryptocurrency started the week above $100,000 but dropped to $92,000 due to bearish pressure from new U.S. trade policies.
Data from CoinGecko shows that Bitcoin is down nearly 4% in the past week, making the $96K level even more critical for the market’s next move.
If buyers step in to defend this price, Bitcoin could attempt to reclaim $100,000 in the coming days.
