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Bitcoin’s recent surge to near $112,000, a 50% gain from April lows, has shown signs of slowing momentum. The relative strength index (RSI) dropped 15%, falling below the overbought threshold, suggesting cooling buyer enthusiasm. This deceleration follows a period of all-time high open interest in Bitcoin futures and increased funding rates. However, a significant 43% decline in perpetual constant variable funding (CVD) indicates stronger sell-side pressure and a more cautious trader stance. The drop in CVD, from -$425.4 million to -$608.2 million, reflects bearish sentiment within the futures market.
Despite the easing momentum, analysts remain bullish on Bitcoin’s long-term prospects. The $106,000 level has proven crucial, with Bitcoin closing above it for seven consecutive days. Analyst AlphaBTC notes Bitcoin’s movement within an ascending channel on the 12-hour timeframe, predicting a price target exceeding $120,000. Michael van de Poppe anticipates Bitcoin attacking all-time highs, potentially retesting $102,000 before surging towards $115,000. Titan of Crypto, using Fibonacci retracement, projects a cycle top of $135,000 based on a pattern repetition from 2024.
Rekt Capital’s analysis suggests Bitcoin is transitioning into a new price discovery uptrend, mirroring its January-March 2024 performance. This parallel suggests a potential peak around $150,000. The key $106,000 support level remains crucial for maintaining this bullish trajectory. While Bitcoin’s recent rally has shown signs of consolidation, analysts remain optimistic, predicting a potential price increase to $150,000 or even higher, contingent upon the continued support of key price levels. It is important to remember that all investment decisions carry inherent risks, and thorough research is crucial before any investment action.
