- Bitcoin tested $96.5K, a key resistance level that may trigger further upside if broken.
- Open Interest surged, reflecting renewed market participation without signs of excessive leverage buildup.
Bitcoin’s [BTC] recent momentum has been accompanied by a notable surge with rising Open Interest, reflecting renewed market participation.
This increase mirrors historical bullish setups where rising open interest preceded strong price action.
Importantly, Funding Rates remained balanced, while Binance data showed shorts in control, indicating a healthy, two-sided market.
At press time, BTC traded at $96,398.33, down 0.36% over the last 24 hours.
Is supply-side pressure easing across exchanges?
Bitcoin’s Exchange Reserve declined to $238.31 billion, reflecting a 0.67% drop. This decrease suggests that investors are increasingly moving BTC off exchanges, typically a bullish signal tied to reduced sell-side pressure.
Moreover, netflow stood at -4.33K BTC, reflecting a +2.45% shift toward outflows. Therefore, this shift in reserve and netflow structure highlights growing accumulation behavior.
The current supply dynamics signal that fewer coins are available for immediate sale, providing a favorable backdrop for price stability and potential upside.
Source: CryptoQuant
Are Bitcoin users returning to the network in large numbers?
Network engagement is 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. Therefore, the heightened address count signals 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.
If this trend continues, it could reinforce BTC’s momentum and validate the on-chain strength behind its rebound.
Source: Santiment
Is profitability returning without signaling overvaluation?
Profitability is back, 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.
Therefore, Bitcoin appears to be in a phase where profit-taking pressure is minimal, but bullish conviction is building.
This metric indicates a balanced market state, where prices can rise without triggering aggressive selling from overextended holders.
Source: Santiment
Will Bitcoin break above the $96.5K barrier?
BTC is currently testing resistance near $96.5K, aligned with the 0.236 Fibonacci retracement zone. Price structure suggests bullish momentum is intact, with a clear uptrend from the March lows.
The RSI read 68.30—near overbought, but not yet overheated. If BTC 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.
Source: CoinGlass
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.
