Bitcoin's Key Support Levels Under Scrutiny

Bitcoin faces potential short-term volatility as market indicators suggest a possible retest of the $100,000 psychological threshold. Current trading patterns reveal restrained profit-taking activity compared to previous cycle peaks, with critical support forming between $96,000 and $104,000. The $96,000 level represents the short-term holder realized price — a historically strong support zone during bullish phases.

Futures Market Flush Creates Healthier Conditions

The recent $3.7 billion reduction in Bitcoin futures open interest has effectively reset overheated market conditions. This liquidation event removed excessive leverage from the system, decreasing the likelihood of cascading sell-offs. Market analysts view this development positively, noting that similar resets have typically preceded sustainable upward movements in previous cycles.

Technical Indicators Favor Swift Recovery

Multiple chart patterns suggest limited downside potential: ——The daily Kijun line at $102,700 previously acted as reliable support ——Ichimoku cloud analysis shows bullish conversion lines intact ——Glassnode data reveals accumulation behavior near current levels

Trading volume patterns show【$104,500】as a crucial pivot point, with liquidity clusters forming above $102,000. This creates a potential springboard for retesting the $107,000 resistance within the coming week.

Market Cycle Far From Exhaustion

CryptoQuant's Net Realized Profit/Loss metric demonstrates significantly lower profit-taking intensity than during March and November 2024's market tops. This divergence suggests the current correction represents healthy consolidation rather than trend reversal. The $96,000-$104,000 range now serves as a value zone for both institutional and retail investors.

Trader Sentiment Remains Constructive

Notable analysts highlight the market's underlying strength: ——Altcoin Sherpa identifies $102,000-$104,500 as optimal re-entry zone ——Titan of Crypto notes converging indicators at key support ——Derivatives data shows put/call ratios normalizing after recent volatility

As the futures market resets and spot demand persists, the stage appears set for Bitcoin's next upward leg. Market participants now watch whether the $100,000 support can trigger the next wave of buying pressure.