Bitcoin achieved its highest daily close in over 10 days on April 21 as it crossed the $65,000 mark. The price of BTC increased by 3.5% from a low of $64,346 on April 21, reaching an intraday high of $66,527 on April 22. At the time of publication, BTC was trading at $65,910, representing a 1.7% increase over the past 24 hours.
The recent Bitcoin supply halving, which occurred two days ago, has contributed to a 5% increase in the price of the pioneer cryptocurrency. The halving saw miner rewards cut in half, from 6.25 BTC per block to 3.125 BTC. Market participants are now speculating whether Bitcoin will continue its upward trend following the halving.
One factor that could drive BTC higher in the coming months is the open interest (OI) funding rate. Data from Coinglass shows that the OI funding rate turned negative on April 18 and April 21 but has now returned to the positive region, currently resting at 0.0079% on April 22. This indicates a growing appetite for long positions. Similar shifts in market sentiment have previously been observed after significant price movements, such as the 5% increase in Bitcoin’s price between April 20 and April 22.
Bitcoin’s OI dropping below 0% marked the lowest levels in over six months, resembling a similar setup seen in October 2023, as observed by Tedtalksmacro. Since October, Bitcoin’s price has risen by 146%, and if history repeats itself, BTC could lead the broader market in a sustained recovery.
Bitcoin has shown strength above the $60,000 level, with the recent weekly close above $65,000 being considered a positive development by independent trader Skew. The zone between $65,000 and $66,000 was initially described as “sticky” for Bitcoin’s price, but it has since climbed above this range and is now supported by a strong demand area. Data from IntoTheBlock’s In/Out of the Money Around (IOMAP) model confirms that the current price level enjoys strong support, with approximately 638,330 BTC previously bought by 1.31 million addresses in the $64,380-$66,338 price range.
Rekt Capital, a popular crypto analyst, also believes that Bitcoin has established strength above the $60,000 mark. They predict that BTC will likely consolidate between the $60,000 range low and $70,000 range high for a few months before entering a “post-halving parabolic upside.”
As Bitcoin’s fourth halving comes to a close, traders are now focusing on the cryptocurrency’s future price action. A pseudonymous user, Moustache, shared a chart tracking Bitcoin’s price 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 anticipating since 2022. From a technical perspective, Bitcoin’s price action has formed a bull flag on the weekly chart, indicating the continuation of the upward trend.
BTC bulls may face resistance from the upper boundary of the flag at $67,500. However, a weekly candlestick close above this level could signal a potential breakout, clearing the path to the all-time high of $73,835 and eventually reaching the $80,000 mark. This would represent a 13% increase from the current price.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment and trading decisions.