The post Bitcoin Faces Crucial $96.5K Resistance Amid Rising Open Interest and Easing Sell-Side Pressure appeared on BitcoinEthereumNews.com.

Bitcoin’s price action continues to capture the attention of investors as it tests a critical resistance level amidst supportive market dynamics. Bitcoin’s recent surge brought its price to $96.5K, a pivotal resistance that may catalyze further price increases if successfully breached. Open Interest has seen a significant rise, indicating renewed interest without excessive leverage, suggesting a healthier trading environment. The latest movement in Bitcoin’s price indicates strong support for further growth as key metrics reveal bullish sentiment in the crypto market. Is supply-side pressure easing across exchanges? Bitcoin’s Exchange Reserve has dipped to $238.31 billion, marking a 0.67% decrease. This trend typically indicates that investors are withdrawing Bitcoin from exchanges, which can signal bullish sentiment due to diminished sell-pressure. Additionally, the netflow statistic at -4.33K BTC shows a noticeable shift towards outflows of 2.45%. These changes in supply dynamics suggest a growing trend of accumulation among investors, further stabilizing pricing conditions for Bitcoin. This alteration in reserve figures could offer a foundation for a bullish outlook, as fewer coins will be readily available for sale, enhancing price stability. Source: CryptoQuant Are Bitcoin users returning to the network in large numbers? The rise in active network engagement is underscored by the recent spike in Daily Active Bitcoin Addresses, now at 924.55K, marking one of the highest participation levels this year. This sharp increase not only reflects enhanced blockchain activity but also indicates strong user adoption beyond speculative trading. Historical data indicate that elevated active address counts often correlate with sustained bullish trends, reinforcing the positive narrative surrounding Bitcoin’s recovery. Should this momentum continue, it may solidify the on-chain strength driving the price rebound. Source: Santiment Is profitability returning without signaling overvaluation? Interestingly, Bitcoin’s profitability has shown signs of returning, with the MVRV Z-score rising to 2.42, a notable rebound from prior…

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Filed under: News - @ May 4, 2025 2:14 am