Bitcoin is resuming its new recovery run fueled by institutional support. Will this lead to a surge to a new all-time high?
Amid the short-term market correction, Bitcoin’s price remains steady at key support levels. With an intraday recovery, BTC’s price suggests the possibility of an extended rally to offset recent declines.
Will this recovery result in a breakout rally that could set a new all-time high this month? Let’s explore this possibility.
Bitcoin Price Analysis
The second consecutive bearish candle in the daily chart caused the BTC price to drop further yesterday following the 3.69% drop on Monday. However, the low price action in the daily candles led to an intraday recovery of 0.97%, with the opening price at $96,658.
On the 4-hour chart, lower price rejections signal a bullish reversal from a long-standing support trendline. The recovery is now approaching the 23.60% Fibonacci level at $98,378.
Bitcoin’s price is currently $97,588, beginning a bullish recovery from a morning star pattern near the support trendline. The rally is now preparing to challenge the local resistance trendline.
This creates a triangle pattern on the 4-hour chart, compressing the trend momentum. With the bullish recovery, the MACD and signal lines on the 4-hour chart are poised for a bullish crossover.
Bitcoin Open Interest Falls under $60B
Due to yesterday’s bearish closing, open interest in Bitcoin has taken a substantial hit, dropping below the $60 billion mark.
Open interest stands at $59.37 billion, reflecting a 0.11% pullback over the past 24 hours. However, the open interest in options has risen by 1.54%, reaching $38.35 billion, while Bitcoin liquidations have reached $74.38 billion in the last 24 hours.
Out of this, $49.40 million came from long liquidations, indicating stronger selling pressure. Amid the pullback, the broader market experienced $517 million in liquidations, with $380.97 million coming from long liquidations.
Bitcoin ETFs See Inflows of $439.56M
Despite the short-term correction in the crypto market, institutional demand remains strong. The daily net inflow on December 10 reached $439.56 million for US BTC spot ETFs, marking the ninth consecutive positive day for these ETFs.
Leading the bullish trend, BlackRock’s (IBIT) Bitcoin ETF recorded an inflow of $295.60 million, followed by Fidelity’s (FBTC) $210.48 million. The total net assets of US spot Bitcoin ETFs have reached $107.76 billion, accounting for 5.65% of Bitcoin’s total market cap.
Bitcoin Price Targets
As institutional support continues to rise, minor corrections may cause short-term disruptions in the ongoing bull run. However, with a bullish rebound, Bitcoin’s price will likely reach a new all-time high if it breaks above the local resistance trendline.
In the short term, a breakout at the 23.60% Fibonacci level at $98,378 on the 4-hour chart could serve as an entry point for optimistic traders. If this level is surpassed, the next target will be the 38.20% Fibonacci level at $103,102.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
