Bitcoin Price Holds Near $96K as Key Support Levels Identified

Bitcoin's price stability is being tested as key indicators, including the adjusted MVRV Z-Score, highlight critical support levels amid market uncertainty. Recent Glassnode analysis shows Bitcoin hovering near its mean price of $96,300, acting as a temporary support. A drop below this level could see the next major support at $80,100, potentially triggering further selling.

Another significant metric is the Short-Term Holder (STH) cost basis, currently at $92,200, which has historically provided strong support during downturns. Bitcoin's price range is currently defined between $71,000 and $131,000, suggesting bulls still maintain control despite market pressures.

The URPD volume profile indicates a liquidity gap below current support, with few transactions in that range. The $71,000 STH cost basis marks the upper bound of this gap, making it a critical level if prices decline. On the upside, $131,000 is seen as a potential price target if bullish momentum prevails.

Bitcoin has shown little movement in the past 24 hours, down 0.11% to $96,744, consolidating below the daily SMA 50 at $98,838. Since its Feb. 3 low of $91,178, Bitcoin has traded in a tight range, awaiting a catalyst.

Key events this week could impact Bitcoin’s price action. FTX is set to begin its first round of creditor payouts post-bankruptcy, and the Federal Reserve will release minutes from its January meeting, where interest rates were held steady. Fed Chair Powell emphasized no rush in cutting rates, pending further inflation improvements.

With Bitcoin's price at a pivotal point, market participants are closely watching these developments for potential direction shifts.