Bitcoin bulls showed a strong defense of the $96,000 support level. This price action corresponded with the boundaries of a falling wedge pattern, typically indicative of a bullish reversal.
The wedge’s support aligned near $96,000, serving as a crucial pivot point for Bitcoin ‘s recent uptrends. The resistance line at $106,000 is critical and could serve as the next target.
If Bitcoin can sustain momentum above the wedge and break through this level, it could validate bullish expectations and potentially lead to higher price targets.
BTC/USDT daily chart | Source: CryptoCove/X
Conversely, a failure to uphold the $96,000 support could trigger a sell-off, pushing prices towards lower support levels, possibly around the $85,500 mark, seen in earlier fluctuations within the wedge.
Historically, such patterns have often resulted in upward breakouts, contributing to optimistic forecasts for Bitcoin reaching and surpassing the $106,000 resistance.
However, market dynamics must support this movement with consistent volume and buying pressure to overcome any potential sell walls near this high resistance zone.
BTC Overlaid on Open Interest Heatmap
The heatmap for Open Interest (OI) across various cryptocurrencies showed as OI started to increase, Bitcoin’s price concurrently began to rise, climbing from $96,000 to a peak near $99,000.
The gradual increase in brightness across most tickers indicated a sustained increase in OI, suggesting a rising level of market participation and speculative interest.
Open interest | Source: Hyblock Capital
This increased OI reached its zenith, signifying 100th percentile in OI, right before a sharp downturn in Bitcoin’s price—a “flash crash” where it plummeted to around $94,000.
Historically, peaks in OI often precede price corrections as positions become overextended.
If this trend holds, future peaks in OI could indicate potential market tops and impending price pullbacks.
Conversely, should OI begin to decline without a corresponding drop in price, it might suggest a consolidation phase is underway, potentially stabilizing prices before the next uptrend or a gradual decline if bearish sentiment takes hold.
What the Bitcoin Terminal Price Indicator Says?
With all that said, will BTC surpass $200K as the Bitcoin Terminal Price indicated the Terminal Price surpassed this threshold?
The indicator suggested that the market may be poised for further bullish momentum, potentially pushing BTC well beyond the current level.
Observing the current position of Bitcoin price, which closely followed the Terminal Price’s uptrend, supported the possibility of an impending bull market peak above the $200k threshold.
BTC Terminal Price | Source: Bitcoin Magazine PRO
Possible scenarios moving forward include a continuation of the uptrend.
On the other hand, should Bitcoin price diverge downwards from the Terminal Price, it could signal a cooling-off period or a correction.
Particularly if driven by external market shocks or changes in investor sentiment.
These corrections are historically common after crypto assets reach new highs, reflecting the volatile nature of cryptocurrency markets.
