Assessment: Will Bitcoin Price Hold at $95K Resistance or Continue to Rise?

Bitcoin (BTC) is currently trading around $96,000, having decreased by nearly 1% over the last 24 hours, with a trading volume of $15.55 billion. The cryptocurrency is facing challenges in surpassing the $97,000 resistance level, which corresponds with the 50-Day Exponential Moving Average (EMA). This level is crucial for determining Bitcoin’s next movement, as a breakout could initiate a bullish rally, while a rejection may lead to a pullback.

Whale activity presents an intriguing scenario. Data indicates that large Bitcoin holders increased their purchases in mid-February, with inflows rising from 100.77 BTC to 7,460 BTC by February 20. Outflows also peaked mid-month but have since declined to 920.64 BTC, indicating reduced selling pressure.

The difference between inflows and outflows points to significant accumulation by whales, which can be a bullish sign.

This accumulation phase is occurring during Bitcoin’s price consolidation, reflecting uncertainty in the market. If Bitcoin manages to break through the $97,000 resistance, it could aim for the next resistance at $98,500, followed by the psychological level of $100,000.

On the other hand, failing to break above $97,000 could trigger a pullback to immediate support at $95,000, potentially leading to a retest of $93,500 and even $92,000.

Increase in M2 Money Supply May Enhance Bitcoin Liquidity

The global M2 money supply is on the rise, indicating improved market liquidity. This is significant for Bitcoin, as increased liquidity typically leads to greater investment in digital assets. Analysts believe Bitcoin could reflect this upward trend, especially if central banks implement more accommodative monetary policies.

Investors are anticipating possible interest rate cuts from the Federal Reserve. Should this occur, it may inject additional liquidity into financial markets, potentially elevating Bitcoin’s price. Historically, Bitcoin performs well in high-liquidity environments, attracting both institutional and retail investors.

However, market sentiment remains cautious. Bitcoin ETFs are experiencing negative flows, and exchange activity is at multi-year lows, reflecting regulatory uncertainties and economic pressures. Despite this, large holders are accumulating Bitcoin, suggesting optimism for a bullish reversal once sentiment shifts.

Key Insights:

• Increasing M2 money supply enhances liquidity, which is favorable for Bitcoin.
• Cautious market sentiment due to regulatory and economic concerns.
• Whale accumulation indicates potential for a bullish reversal.

Technical Analysis: Will Bitcoin Surpass $97,000?

Bitcoin is currently testing the $97,000 resistance level, which aligns with the 50-Day EMA, serving as dynamic resistance. A successful breakout above this level could propel Bitcoin toward the next resistance at $98,500 and potentially $100,000. However, the Relative Strength Index (RSI) is hovering near 50, indicating market indecision.

On the downside, immediate support is at $95,000, with subsequent support levels at $93,500 and $92,000. A drop below $95,000 could heighten selling pressure, potentially driving Bitcoin toward $93,500. Bearish momentum would be confirmed if BTC falls below $92,000, negating the bullish outlook.

#Bitcoin Technical Analysis: Will BTC Break $97,000?
Bitcoin is testing the $97,000 resistance level, aligned with the 50-Day EMA. A breakout may push BTC to $98,500 and even $100,000!
Downside Risk: Support at $95,000, with lower levels at $93,500 and $92,000. pic.twitter.com/wXZ7XvKjje

— Arslan Ali (@forex_arslan) February 23, 2025

Traders should closely monitor the $97,000 resistance and $95,000 support, as a breakout or breakdown from these levels will determine Bitcoin’s next movement. The bullish sentiment remains intact as long as Bitcoin stays above the $95,000 pivot point.

Key Insights:

• Resistance at $97,000: The 50-Day EMA is acting as dynamic resistance. A breakout above this level could target $98,500 and $100,000.
• Support at $95,000: A decline below $95,000 could lead to further drops toward $93,500 and $92,000.
• Whale Accumulation: Large holder inflows indicate aggressive accumulation, suggesting bullish sentiment despite market indecision.

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