Bitcoin’s price movements are currently stuck in a narrow range just below the significant $100,000 mark, with Open Interest (OI) playing a critical role in shaping recent price trends.
An interesting shift was observed in the OI data, indicating a rise in market participation as the heatmap for various cryptocurrencies lit up with activity.
A notable OI pivot occurred when Bitcoin found support in the 95,600-95,900 range, paving the way for a push towards the next OI resistance zone.
Following this development, Bitcoin managed to breach the 97,000 level, fueled by growing interest in both long and short positions.
Now, all eyes are on the $99,000 range, where a significant OI resistance level is situated.
If Bitcoin maintains its current momentum and the support around $96,000 remains solid, it could potentially aim for the $99,600 to $99,900 range next. These OI levels will be crucial in determining Bitcoin’s next course of action.
The ultimate outcome hinges on whether traders choose to reinforce their existing positions or cash in on profits. Such a decision could introduce heightened volatility and test the resilience of the $99,000 resistance level.
What Comes Next for Bitcoin Post 3 Failures?
Bitcoin’s price trajectory is approaching a pivotal moment as it nears a potential breakout from a descending trendline. This trendline has previously led to three rejections, each occurring above the $99,000 threshold.
Recently, Bitcoin surged from $93,500 to $98,400, resulting in 1.7 million BTC returning to profitability, per observations by Axel Adler on X (formerly known as Twitter).
Historically, each rejection at this trendline has been followed by pullbacks, testing lower support levels before embarking on another upward move. Bitcoin is once again edging towards this resistance line, raising the question of whether it will break through or face yet another rejection.
The trendline signifies persistent resistance near the $100,000 milestone, which holds significant psychological importance. A successful breach could signal a bullish extension for Bitcoin, potentially leading to a rally back towards its previous all-time high of $109,000 and possibly beyond.
Conversely, failure to surpass this barrier might prompt Bitcoin to retest lower support levels, possibly descending to $97,300 or even further down to $90,000, as hinted by earlier price lows seen in the pattern back in early February.
The outcome of a confirmed breakout or rejection at this juncture could significantly shape Bitcoin’s near-term market direction.