Bitcoin Nears $99K: Will Tenkan Hold As Key Support Level?

Key Insights :925K+ active Bitcoin addresses signal the highest network use since late 2024.Long-term holders added 254K BTC since the bottom, reversing earlier sell-offs.Technicals point to a possible retest of Tenkan-sen near the $93K support zone.Both on the charts and the chain, Bitcoin has shown renewed strength. Long-term holders have resumed accumulation, and active addresses have reached their highest level in six months.Technical indicators suggest a potential retest of the Tenkan-sen support line. This could influence short-term price action as traders assess key support levels.Surge in Bitcoin Network Activity Signals Market StrengthBitcoin’s on-chain network activity has hit a six-month high. Data from Glassnode showed that on May 2, 2025, 925,914 Bitcoin addresses were active in a single day. That is the most since late 2024, and a significant increase in user engagement.BTC price also spiked to $96,951.88 on the same day. Active addresses were between 650,000 and 850,000 over the previous two weeks. The early May spike in interest indicates that both new and existing users are becoming interested.Bitcoin number of active addresses | Source: glassnodeA growing number of users engaging with the network typically reflects market strength. A significant increase in address activity often signals improved market conditions.This can be sending or receiving Bitcoin, interacting with services, or moving funds between wallets. The fact that rising activity is also aligned with price growth gives more weight to the current trend.Long-Term Holders Resume AccumulationMoreover, long-term holders are back to accumulating Bitcoin, as data from Glassnode also shows. After the recent market bottom, these holders have accumulated about 254,000 BTC into their wallets.The total held by long-term holders is going up again in early May 2025 after falling between February and March.BTC total supply held by long-term holders | Source: glassnodeConfidence is often seen as a sign of long-term holder accumulation. Usually, these wallets don’t sell quickly and hold Bitcoin through market swings.Long-term Bitcoin holders increased their holdings significantly throughout 2023. Supply rose from 13.6 million BTC in May to nearly 14.6 million BTC by the end of the year, signaling strong investor confidence.However, their holdings plunged sharply in late 2024. This indicates that investors who hold for long periods are returning to the market.The change started in March and will continue until May. This period has also seen the price of Bitcoin recover from below $80,000 to near $97,000.Sentiment Remains BullishAdding to the positive momentum, market sentiment has remained strong in recent weeks. The Bitcoin Advanced Sentiment Index shows bullish sentiment has remained above 68% since late April.The index was steady at 68.3% on May 2, corresponding to the level seen on April 24 when Bitcoin was trading at $93,000.Bitcoin advanced sentiment index | Source: CryptoQuantThis measure combines price movement with trader behaviour and emotional trends. Sentiment above 60% for an extended period usually indicates that buyers still have control.The bell curve represents the sentiment score, and the current values are in the top range, consistent with strong optimism.Bitcoin price has shown some consolidation, but it has not weakened the overall sentiment. The black price line in the chart mainly traces upward, with occasional sideways moves. This implies that although some traders are wary, the market still expects higher prices.Bitcoin Price Consolidation Near Tenkan-Sen Signals Key Support TestMeanwhile, the Ichimoku Cloud technical analysis from Titan of Crypto indicates that Bitcoin could retest the Tenkan line. The price has been moving in a defined range between $92,880 and $95,800 as of May 3. After a strong rally in late April, this range is consolidating.Bitcoin Ichimoku analysis | Source: Titan of crypto, XAccording to the chart, the level to watch is the Tenkan-sen (a key short-term support line in red). This line could be supported if Bitcoin retraces slightly. The structure remains bullish as long as the price is above this level.The longer-term target as per the Ichimoku setup is also around $99,448.50. This is just below the psychological $100,000 level. Bitcoin price is in a tightening range but has shown no weakness.This price consolidation area may be a platform for the next move. A breakout to the upper target may follow if support holds and volume increases. Alternatively, the Tenkan-sen will be tested as a key support level if the range breaks to the downside.DisclaimerThis article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.godfrey mwirigiThe post Bitcoin Nears $99K: Will Tenkan Hold As Key Support Level? appeared first on The Market Periodical.