Bitcoin has made a remarkable recovery, surging more than 15% since Monday’s flash crash that briefly sent its price to the $89,000 level. This rebound has reignited the bullish momentum and BTC is now moving above a major supply zone. Analysts believe that if BTC clears these levels, it could deliver big gains and set the stage for a broader rally in the crypto market.
CryptoQuant data further fuels the optimism, revealing that open interest on top exchanges has risen to 350,000 BTC and is trending upwards. This spike in open interest is a classic bullish signal for the market, indicating increased trading activity and increased interest from both institutional and retail investors. The increase in participation suggests that market participants are poised for Bitcoin’s next big move.
As Bitcoin approaches these key levels, market attention remains on its ability to maintain upward momentum and confirm a bullish breakout. With trading activity increasing and technical indicators aligning in favor of the bulls, BTC appears poised for further upside. The next few days will be crucial in determining whether BTC is able to capitalize on this momentum and continue its march toward new all-time highs. Investors are watching closely to see what will start an explosive rally.
Bitcoin market heating up
Bitcoin is approaching the final year of one of the most bullish stages in history of the halving cycle. This period is often characterized by violent price spikes, with Bitcoin leading the way and the entire cryptocurrency market following suit. Analysts widely consider this stage to be a key opportunity for investors, as BTC tends to make the most gains during this stage.
Renowned crypto analyst Axel Adler recently shared insightful data that supports this bullish outlook. According to Adler, open interest on top exchanges rose to 350,000 BTC, reflecting a significant increase in trading activity and investor engagement. This relatively high level of open interest has steadily increased over the past quarter, indicating growing demand for Bitcoin among both institutional investors and retail participants.
Bitcoin aggregate open interest | Source: Axel Adler of X
What’s particularly noteworthy is that despite recent growth, current open interest numbers remain well below all-time highs. This gap suggests that BTC still has considerable room for expansion as it progresses through this stage of the cycle. If more investors take positions in anticipation of a bullish breakout, trading activity could spike further and the price’s upward momentum could increase.
Strong technical and market indicators converge with the timing of the historically bullish halving cycle, painting an optimistic picture for Bitcoin’s near-term outlook. As interest in BTC continues to grow, this step could be the start of a significant bull run, potentially pushing it to new all-time highs and pushing the broader crypto market to new heights. Investors are watching closely for what could be Bitcoin’s most transformative period yet.
BTC Tag $102,000 Supply
Bitcoin (BTC) has risen 3% in the past few hours and is currently trading at $102,900. This move ultimately allowed BTC to clear an important local high of $102,700, marking the beginning of a potential bullish phase. With this breakout, BTC stands to challenge higher levels, but bulls will need to defend key supports to maintain momentum.
BTC surpasses local high of $102,700 | Source: TradingView’s BTCUSDT chart
For Bitcoin to sustain this rally, it is important to maintain a strong foothold above the psychological level of $100,000. This level acts as a pivotal support and its loss could undermine the recent breakout and potentially lead to a consolidation or retracement. On the other hand, if BTC continues to trade above $100,000, the foundation for further gains will be laid.
The next major resistance level lies at $103,600, a key level that could determine Bitcoin’s ability to push through to price discovery. A strong break above this mark could intensify the bullish movement and push BTC into uncharted territory, bringing it closer to new all-time highs.
Investors are closely monitoring these key levels as momentum builds. A successful holding of $100,000 and settlement of $103,600 could pave the way for a transformative rise and cement Bitcoin’s place at the forefront of the crypto market.
Featured image from Dall-E, chart from TradingView
