Bitcoin is showing fresh signs of life, edging back toward the $97,000 area after weeks of selling pressure and cautious positioning. While this rebound doesn’t yet confirm a full trend reversal, it does suggest that downward momentum is easing and buyers are increasingly willing to absorb available supply. On-chain data backs the shift. A CryptoQuant analyst flagged the Bitcoin Bull Score Index dropping to 20 — a rare reading that has appeared only seven times in the past six years. Scores this low reflect widespread pessimism, with few bullish signals active simultaneously. Historically, those extreme readings often emerge late in corrections, when most sellers have already exited and the market becomes sensitive to even modest demand improvements. Why this matters now - Psychological and technical: Bitcoin is approaching the key $100,000 round number, a major psychological level and reference point for both short-term traders and long-term holders. - Sentiment rarity: The current Bull Score reading places today’s environment among the rarest sentiment regimes in Bitcoin’s history, signaling a possible transition from defensive positioning to renewed accumulation if buying continues. - Timing: The coming weeks will be decisive—either a sustained push above $100K (backed by improving on-chain breadth) or persistent failure around that zone that prolongs consolidation. Technical picture - Price action: Bitcoin is trading near $96,000–$97,000, a zone that served as support in mid-2025 and later flipped to resistance after the November breakdown. - Moving averages: The 50-week moving average is declining and still caps upside attempts; reclaiming it would be an important validation for trend continuation. The 100-week moving average remains sloped upward and has acted as structural support during recent pullbacks. - Volume: The recent rebound toward $97K occurred without a material increase in volume, suggesting limited conviction and that the move could be a recovery leg inside a broader consolidation rather than a fresh impulse. Scenarios to watch - Bullish base case: Bitcoin consolidates above $95,000 and reclaims the 50-week moving average — this raises the odds of a move toward the $105,000–$110,000 area. - Bearish risk: Failure to hold the $95K–$97K zone would leave the market vulnerable to renewed downside toward the mid-$80,000s and keep broader consolidation intact. Key things to monitor - Whether price can hold above $95,000 and overcome the 50-week MA - Volume expansion on up-days (confirming conviction) - On-chain breadth and the Bull Score recovering from extreme lows Bottom line: sentiment is unusually pessimistic by historical standards, and that rare extremity often arrives late in corrective phases. The market looks primed for a potential shift, but confirmation will require stronger price action, volume, and improving on-chain breadth as Bitcoin tests the $100,000 threshold. Read more AI-generated news on: undefined/news

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