Key Insights:
- Bitcoin holds above MA200, signaling bullish momentum.
- Open interest rises, showing increased market participation.
- Key resistance levels at $90K, $97K, and $103K ahead.
Bitcoin price has bounced back above $89,000 maintaining its bullish trend. If the momentum continues, analysts project it could even hit $97,000–$103,000.
Bitcoin Price Maintains Key Support Levels Amid Bullish Trend
BTC price appears to have been on point of a recovery as it trades at 89,371. According to market analysts best_analysts, Bitcoin price has been finding support at the 200-day moving average (MA200), which is a historically important level. This support has helped form a rising trendline, confirming the change to an uptrend.
Technical analysis suggests that Bitcoin could face resistance at Fibonacci retracement levels. Below, the nearest barrier is the 38.2% level near $90,269, stronger resistance comes in at the 61.8% level ($97,694) and 78.6% level ($102,979). In the long run at least, Bitcoin could still surpass $103,000, analysts suggest if momentum continues.
Market Activity and Open Interest Indicate Growing Engagement
As for now Bitcoin trading volume has reduced slightly by 20% suggesting decrease in market activities. Despite this slight decline buyers remain confident in the asset and its potential for a breakout. Market analysts state that a breakout above the range of $90,000 – $93,000 could firm up Bitcoin’s bullish trend.
Also, data shows a rise in open interest which means upping in trader participation. All of this in total open interest totaling $25.3 billion, 89.7% of which is perpetual contracts and 10.3%.The growing preference for perpetual swaps implies that traders are using leverage with expectation for further price movement.
In the last 24 hours, open interest has increased by 3.40% with perpetual contracts increasing by 3.62%. As such, this rise reflects the growing number of positions being opened, indicating a strengthening market participation.
Institutional Activity and Historical Patterns Suggest Potential Growth
Large-scale transactions exceeding $100,000 totaled $163.66 billion over the past seven days. Market analyst MerlijnTrader pointed out that Bitcoin cycles often repeat, referencing historical patterns in 2017 and 2023, when Bitcoin reversed after filling CME gaps. This could indicate the potential for Bitcoin to continue its upward movement in 2025.
Furthermore, historical data reveals that Bitcoin’s price fluctuations are in correlation with macroeconomic fundamentals including the U.S. dollar index (DXY). Early months of 2017 were the consolidation for Bitcoin, which, later, between April and December saw a sharp rise. Per speculation by analysts, Bitcoin’s reaction to general market actions is mirroring a pattern similar to that which it previously experienced.
Exchange Netflows and Holder Profitability Support Long-Term Growth
Negative exchange netflow led to $1.32 billion in Bitcoin leaving exchanges than entering over the past seven days. This suggests that investors are accumulating Bitcoin rather than preparing for immediate selling.
According to holders data, 89% of BTC holders are in profit, and 73% have been holding since more than a year, showing they believe in Bitcoin’s value in the long term. And the low concentration of large holders (11%) signals a decentralized distribution, which reduces the likelihood of major sell-offs affecting the price.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.