Bitcoin (BTC) has recently shown resilience in defending key support levels, especially at the $96,000 mark. After a period of consolidation beneath the psychological $100,000 level, Bitcoin’s bulls have managed to keep the price above the mid-range support. While the cryptocurrency has faced some selling pressure in the past few days, there are signs that BTC could be setting up for a potential rebound and a move toward $105,000.

Strong Support at $96k

Bitcoin has formed a trading range between $92.1k and $99.5k, struggling to break above the $100,000 psychological resistance. However, the mid-range support level, which is around $95.8k, has held strong over the past three days, providing a solid foundation for Bitcoin’s price. Despite some short-term volatility, Bitcoin bulls have successfully defended this support level, and the price has remained above it during the 12-hour trading sessions.

The accumulation/distribution (A/D) indicator has shown an upward trend, indicating that buyers are actively adding to their positions near the mid-range support. While Bitcoin could experience short-term dips to around $94.5k due to a possible liquidity hunt, the overall sentiment suggests a rebound is more likely.

Bearish MACD and Falling Volume

Despite the positive signs of support, there are some concerns about Bitcoin’s momentum. The Moving Average Convergence Divergence (MACD) indicator on the 12-hour timeframe remains bearish, signaling that bullish momentum may be waning. Although the MACD is still above zero, its downward slope indicates a loss of upward momentum. Additionally, trading volume has gradually declined as Bitcoin consolidates within its current range, further suggesting that market participants are awaiting clearer direction.

Falling Open Interest: Market Waiting for a Breakout

One of the key indicators to watch is the falling Open Interest (OI), which reflects the number of open futures contracts on Bitcoin. A declining OI typically indicates that speculators are uncertain about the next market move. Bitcoin’s current range-bound behavior, where it has neither gained nor lost significant ground, has led to a reduction in OI, as many traders wait for a breakout in either direction.

This shift in sentiment points to a market that is in a wait-and-see mode, with many speculators hesitant to take large positions until a clear trend emerges. A sudden price move, either higher or lower, could trigger a new round of buying or selling, depending on the direction.

Liquidity Clusters: $105k in Focus

Bitcoin’s price movement is often influenced by liquidity clusters—regions where a large number of orders are placed. Currently, there is a significant liquidity cluster at $105,000. The consolidation around the $100,000 level has contributed to the buildup of this liquidity, and it’s highly likely that Bitcoin will test these higher levels in the near future.

A move towards $105k would align with the rising liquidity in that region, which could encourage further buying pressure as traders look to take advantage of a potential breakout. The likelihood of reaching $105k seems higher than the possibility of a deeper decline, especially with the current buildup of support at the $96k and $94.5k levels.

Conclusion: What’s Next for Bitcoin?

As Bitcoin continues to defend its key support levels, the next major move could be toward the $105,000 resistance level. The falling Open Interest and declining spot demand indicate that market participants are waiting for a breakout to confirm the next trend. While the MACD and volume trends suggest some bearish pressure, the strong support and liquidity at $96k and $105k could be the catalyst for Bitcoin to push higher.

For now, Bitcoin remains in a period of consolidation, with volatility likely to continue until the market chooses a direction. Investors and traders should keep an eye on the liquidity clusters and support levels, as a move above $100k could signal the next phase in Bitcoin’s price action.