- Bitcoin’s $100K support is critical as traders eye a potential bullish reversal
- Options data shows declining conviction despite the market’s strong call bias
- Surge in new wallets and circulation signals rising network participation in BTC
Bitcoin (BTC) continues to tread through turbulent waters as the flagship cryptocurrency trades just below $105,000. Despite a modest pullback in recent days, analysts are closely watching how BTC interacts with critical support zones.
Market participants are particularly interested in whether Bitcoin will sweep recent lows to trigger a liquidity grab before rebounding potentially setting the stage for a bullish reversal.
Key Support Levels Could Define Bitcoin’s Short-Term Direction
Michaël van de Poppe, a well-followed market analyst, suggests that a dip below current lows could be healthy. If BTC falls beneath support around $100,739 and then quickly reverses, it could clear out weak hands and fuel a rally. A deeper support zone at $91,779 remains vital on higher timeframes. Holding above this level is crucial to maintain the broader uptrend.
Resistance remains strong at $105,800. A breakout above this level would signal strength and may act as a catalyst for significant upside momentum. According to van de Poppe, such a move could mark the beginning of a strong bullish trend. Hence, traders are now positioning themselves carefully as the market enters a pivotal phase.
Options Market Reflects Caution, Despite Call Bias
Data from Glassnode reveals a notable drop in the BTC Options Put/Call Open Interest (OI) ratio from 0.64 to 0.56. This decline is due to both call and put OI unwinding.
Call open interest fell from $28.7 billion to $24.7 billion, while put OI dropped from $18.4 billion to $13.9 billion. Although the market remains call-heavy, the sharp contraction in both legs reflects waning conviction amid sideways price action.
Additionally, Glassnode’s URPD (Entity-adjusted) data shows a growing institutional footprint in recent months. Wallets holding between 10,000 and 100,000 BTC have been active near the $78,000–$90,000 range. Meanwhile, the largest wallets with over 100,000 BTC appear concentrated between $74,000 and $76,000, indicating strong accumulation at lower levels.
On-Chain Metrics Show Renewed Activity
On-chain signals also hint at a possible turnaround. According to Santiment, an analytic firm, 556,830 new BTC wallets were created on May 29, the highest since December 2023.
Furthermore, BTC saw 241,360 coins circulate on June 2, the most since December 2024. These figures suggest rising participation and renewed network activity often precursors to sustained price moves.
As of press time, Bitcoin is priced at $104,558, reflecting a weekly decline of 3.13%. However, rising on-chain activity and strong support zones could pave the way for a significant reversal if bulls reclaim momentum.
