Bitcoin Reaches Stagnation Point at $96K: What Will Trigger a Price Surge?
Market Analysis
Bitcoin has recorded a 10% increase since the beginning of the year, nearing $87,500, but has stalled below the resistance level of $96,659. Analysts assert that the price remains well-positioned to reach higher targets if key supply levels are reclaimed and short-term demand continues to rise.
Key Elements:
- Bitcoin must break the resistance at $98,000 to trigger a rally towards a six-figure price.
- Spot demand and ETF inflows must persist for a breakout towards $100,000.
The price of Bitcoin has been repeatedly rejected by a supply zone between $93,000 and $110,000, according to the cost distribution map from long-term holders (LTH) by Glassnode. This zone acts as a transition barrier, separating corrective phases from sustainable growth regimes.
“This zone has consistently acted as a transition barrier, where the absorption of distribution by long-term holders remains a prerequisite for any broader trend reversals,” stated Glassnode in its latest weekly report.
Conversely, for Bitcoin to restore confidence in sustaining its rally, it needs to exceed the resistance of $98,300, a critical market confidence indicator. “Maintaining trades above this threshold would indicate that new demand is absorbing the supply above,” added Glassnode.
Michael van de Poppe, founder of MN Capital, indicated that Bitcoin could reach $100,000 this week, highlighting the upward trend in the market.
Demand for spot Bitcoin ETFs has started to rebound, registering inflows of $1.7 billion in the last three days, reflecting a positive structural shift in purchasing behavior across markets.
“The price of Bitcoin will become parabolic if ETF demand persists in the long term,” stated Matt Hougan, CIO at Bitwise. He compared this situation to gold, which saw a 65% increase following supply absorption.
