Will the price of Bitcoin reach a new all-time high as speculation grows in the derivatives market, with open interest rising to $68 billion?
Bulls are preparing for a fresh rally as Bitcoin bounces back to the $105,000 level. Over the past 24 hours, the crypto market has remained divided, with $225 million in liquidations.
With $103 million in long and $122 million in short liquidations, the market stands at a crossroads despite the short-term recovery. With the potential to create a new all-time high, will Bitcoin reach the $112,000 mark soon?
Bitcoin Price Analysis
In the 4-hour chart, the BTC price trend reveals a bullish recovery from the 50-EMA line to challenge the $107,123 resistance level. However, failing to surpass the overhead supply zone, Bitcoin experienced a bearish reversal.
Currently, Bitcoin trades at a market price of $105,547 with two consecutive 4-hour bearish candles. This accounts for a pullback of 1.3%. Furthermore, the current trend also suggests the possibility of a double-top pattern if the downtrend continues.
Nevertheless, the overall recovery has influenced a positive alignment in the crucial exponential moving average lines. Additionally, the daily RSI remains above the halfway mark, reflecting strong bullish demand.
Bitcoin Open Interest Hits $68 Billion
With the overall recovery, Bitcoin’s open interest has surged by 2.60%, reaching $68.88 billion. Furthermore, the long-to-short ratio over the past 24 hours has turned bullish at 1.0288, indicating a significant increase in bullish positions alongside the broader market recovery.
However, the funding rate has dipped to 0.0060%, down from the previous level of 0.0110%.
This suggests a minor dip in trader confidence holding bullish positions. Nevertheless, Bitcoin’s overall optimism in the derivatives segment remains strong, signaling a potential recovery in the coming days.
BTC Price Targets
As bullish speculation in the derivatives market suggests a potential recovery, the immediate resistance at $107,123 remains key. A breakout above this level could extend the recovery rally, potentially leading to a new all-time high.
Based on Fibonacci levels, the next potential price target is the 1.272 Fibonacci level at $112,056. On the other hand, crucial support is at the 78.6% Fibonacci level at $103,393.
Read the full article here
