Bitcoin Approaches $96.7K Target as On-Chain Activity Surges

Bitcoin (BTC) is currently trading around the $85,000 mark, facing a significant sell wall as leverage cools and new on-chain money flows in, according to insights from Glassnode. This combination suggests a potential price target of $96.7K.

Glassnode's latest report highlights a sell wall between $85,000 and $85,500, indicating that buyers must absorb these orders for prices to rise further. The report also notes that profit-taking is occurring at levels above the norm.

In recent weeks, Bitcoin's price action has shown resilience, closing about 2% higher after a rally on October 4. Despite a cooling in ETF inflows and trading volume, on-chain activity remains robust, with metrics such as active addresses and transfer volume rising significantly.

Open interest in Bitcoin futures has returned to its normal range, with a slight easing of selling pressure in perpetual futures contracts. Although leverage has diminished, it has not entirely disappeared, indicating a cautious market sentiment.

As ETF demand wanes, spot buyers have emerged as net purchasers, contributing to a positive netflow despite lower trading volumes. Notably, wallets holding between 100 to 1,000 BTC have been accumulating Bitcoin since July, further supporting the bullish outlook.

Glassnode's analysis reveals that nearly three-quarters of Bitcoin supply is currently in profit. While profit-taking has been light, short-term holders are seeing unrealized gains well above their historical averages. This suggests that if recent buyers maintain their positions, Bitcoin could indeed approach the $96.7K target, driven by demand rather than leveraged positions.