Unexpected Bitcoin Price Support Spotted, Price At Make or Break Level?

Key Insights:

• Bitcoin defends $96,700 support as short-term holder entry price holds firm and signals possible buyer confidence.
• 3–5 year holders reduce supply from 15.7% to 11.9%, creating mild selling pressure despite market stability.
• Next move hinges on $104,600 break with potential for a rally to $120,000 in the near-term.

Bitcoin’s price is steady at around the critical level of $105,000. The renewed bullish development is giving traders and analysts new hope as activity from long-term holders continues to shape market sentiment.

The current situation indicates a potential turning point that could influence price action in the days and weeks ahead.

Strong Bitcoin Price Support Holds Firm Around $96,700

Market data shows that Bitcoin price has found an unexpected but essential foothold around the $96,700 level. This price point is not random.

According to data shared by CryptoQuant, it represents the average amount paid by short-term investors, who are defined as those who bought within the past 155 days.

Historically, when Bitcoin price stays above this mark, it signals strength in the market, as it shows newer buyers are not underwater and may hold on longer.

This support has held through recent volatility, giving many the impression that buyers are stepping in again.

It also connects with previous trends seen during past bull runs, where similar average entry prices became key levels to watch.

A break below this area could trigger selling from panic-driven holders. However, the price has stayed firm so far, suggesting that the market is not ready to give up just yet.

TradingView analysis adds another layer to this view. The platform shows Bitcoin trying to push through resistance near $105,600 to $108,000.

If the current support continues to hold, there is a good chance for the price to rebound strongly.

Some analysts even see this as the first step toward a new upward leg, provided buyers do not lose momentum.

Previous commentary from Bernstein in February also described any move below $80,000 as a buying zone.

Notably, this outlook reinforces the idea that Bitcoin still sits in a healthy range for accumulation.

Shift in Holder Distribution Raises Questions

While the price support brings some relief, on-chain data from Glassnode suggests a major change in how Bitcoin is being held.

As of June 2, long-term holders who have kept their coins between three and five years are reducing their positions.

Notably, these investors once held 15.7% of Bitcoin’s total supply in November 2024, but that figure has dropped to 11.9%

This drop is not happening all at once. After Bitcoin’s recent ATH boost, many of these holders paused selling and resumed in April.

The pace has been steady, not rushed, which may mean they are waiting for higher prices before exiting.

Their activity also introduces a supply overhang, which could limit upside movement unless fresh demand steps in.

Interestingly, institutional investors are helping absorb this selling.

Data from CoinShares shows that by May 2025, BlackRock’s IBIT ETF held $40 billion in assets. This may explain why the market has not yet turned sharply downward.

What This Means for Bitcoin Price’s Next Move

Bitcoin volatility remains high as the price dropped from $111,000 to $104,000 recently.

As of this publication, Bitcoin trades at $105,293.31, marking a slight recovery with a 1.16% gain in 24 hours.

Despite the bounce, the market remains on edge. According to market sentiment, Bitcoin is at a make-or-break moment.

Traders are closely watching whether the $96,700 support can continue to hold or give way to further downside pressure.

If price pushes past $104,600, some expect it to aim for $120,000 soon. However, any drop below this support may bring renewed pressure.

Glassnode suggests a significant top is unlikely until long-term holders reduce their share below 7 to 8%. However, the road ahead here may still be rocky.

The balance between support strength and seller pressure will likely decide Bitcoin’s short-term direction.

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