Bitcoin is once again capturing the spotlight as its price inches closer to a critical resistance level, igniting renewed hopes of a push toward the long-anticipated $100,000 milestone. After briefly testing the $96,500 zone, Bitcoin is showing promising signs of strength, backed by both on-chain data and activity in the derivatives market. As of the latest data, Bitcoin (BTC) was trading at $96,398—only slightly down by 0.36% in the past 24 hours, but well within range of a potential breakout.

What’s fueling this momentum? One of the clearest indicators comes from Bitcoin’s futures market. Open Interest, which measures the total number of active derivatives contracts, has surged notably, pointing to increased market participation. More importantly, this rise hasn’t been accompanied by dangerous levels of leverage. Funding rates—the costs traders pay to keep positions open—have remained stable, which suggests that the current uptick is organic and not driven by speculative excess. Interestingly, short positions continue to dominate platforms like Binance, signaling a healthy tug-of-war between bulls and bears. When shorts are prevalent during a rising market, it often sets the stage for a potential short squeeze, which can accelerate upward momentum.

Beyond trading activity, there are strong signs of investor confidence in how Bitcoin is being handled on exchanges. The amount of BTC held on exchanges has declined to around $238.31 billion, a drop of 0.67%. This coincides with net outflows of 4,300 BTC, a 2.45% increase in coins being moved off exchanges. Historically, when Bitcoin leaves exchanges in large volumes, it suggests holders are storing it in personal wallets, possibly anticipating future price increases. This reduces immediate sell pressure and creates a more stable environment for the asset to grow in value.

On-chain data further reinforces the bullish sentiment. Daily active addresses on the Bitcoin network have jumped to 924,550—one of the highest figures recorded this year. This metric is a strong indicator of organic network usage, suggesting that more users are transacting with Bitcoin rather than simply trading it speculatively. A rise in active addresses often signals growing interest and adoption, and in past cycles, this has aligned with extended bull runs. Increased network participation supports the idea that Bitcoin’s current rally is backed by real demand, not just hype.

Profitability among Bitcoin holders is also increasing, but not to levels that typically fuel widespread profit-taking. The MVRV Z-score—a metric used to gauge whether Bitcoin is over or undervalued—has climbed to 2.42. This level shows that while holders are back in profit, the market hasn’t reached the point of being dangerously overheated. Profit-taking pressure is still relatively low, which allows for further gains without triggering a sell-off.

From a technical standpoint, the $96,500 level remains a crucial area to watch. It aligns with the 0.236 Fibonacci retracement zone and serves as a key resistance point. If Bitcoin can decisively flip this range into support, the path toward previous highs and even the $100,000 mark becomes more realistic. The Relative Strength Index (RSI) is currently at 68.3—close to overbought, but not yet at extreme levels. This gives bulls some breathing room for further price increases before a pullback becomes likely.

In summary, Bitcoin’s recent price action appears to be well-supported by solid fundamentals. Rising Open Interest without excessive leverage, declining exchange reserves, surging network activity, and healthy profitability levels all point toward a market that is gathering momentum in a sustainable way. If BTC manages to break and hold above the $96,500–$97,000 resistance zone, the long-awaited move toward $100,000 could arrive sooner than many expect. As it stands, the stars seem to be aligning for Bitcoin’s next big leap.