Bitcoin (BTC) achieved its highest daily close in over ten days on April 21, as it reclaimed the $65,000 level. The price of BTC rose from a low of $64,346 on April 21, increasing by 3.5% to reach an intraday high of $66,527 on April 22.
According to data from Cointelegraph Markets Pro and TradingView, at the time of publication, BTC was trading at $65,910, representing a 1.7% increase over the last 24 hours.
The price of the leading cryptocurrency has risen by 5% since the Bitcoin supply halving that occurred two days ago. This event resulted in a reduction in miner rewards from 6.25 BTC per block to 3.125 BTC. Some market participants are now speculating whether Bitcoin will continue its upward trend after the halving.
Let’s examine the factors that could drive BTC higher in the coming months.
Bitcoin open interest indicates potential for price increase
Data from Coinglass reveals that Bitcoin’s open interest (OI) funding rate turned negative on April 18 and again on April 21. However, the metric has now returned to positive territory and currently stands at 0.0079% as of April 22, indicating a growing appetite for long positions.
This shift in market sentiment typically occurs after significant price movements, as seen with the 5% increase in Bitcoin’s price between April 20 and April 22.
The recent drop in Bitcoin OI below 0% marked the lowest levels in over six months, a pattern similar to what was observed in October 2023, as noted by crypto analyst Tedtalksmacro.
Bitcoin price demonstrates strength above $60,000
Last week, Bitcoin’s price action was characterized by selling at each Wall Street open. However, analyzing the current technical setup, independent trader Skew described the weekly close above $65,000 as “pretty good.”
Skew shared a chart with his followers, highlighting that the zone between $65,000 and $66,000 was a significant level of resistance for Bitcoin price. It is worth noting that BTC has since surpassed this zone and is now resting on relatively strong support defined by the demand area.
Data from IntoTheBlock’s In/Out of the Money Around (IOMAP) model further supports this, showing that BTC price has strong support on the downside compared to resistance in its recovery path. Approximately 638,330 BTC were previously bought by 1.31 million addresses within the $64,380 to $66,338 price range.
Prominent crypto analyst Rekt Capital also acknowledged that BTC price has established strength above the $60,000 mark.
Bitcoin’s post-halving upside potential
With the Bitcoin fourth halving now complete, traders and investors are contemplating how Bitcoin price will perform in the aftermath. One analyst, known as Moustache, shared a chart tracking Bitcoin’s price action since its previous peak in 2021. According to Moustache, the next significant target for BTC price is the $80,000 mark, a target they have been focusing on since 2022.
From a technical perspective, Bitcoin’s price action has formed a bullish flag pattern on the weekly chart, suggesting a continuation of the uptrend. However, BTC bulls face resistance from the upper boundary of the flag at $67,500. A weekly candlestick close above this level would indicate a possible breakout, clearing the path towards the all-time high of $73,835 and eventually reaching the $80,000 mark. Such a move would represent a 13% increase from the current price.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.