Bitcoin stabilizes above $96K, signaling a potential breakout. Can BTC rally back to the $103K supply zone?
As Bitcoin stabilizes above the $96,000 mark, an intraday reversal hints at a strong bullish comeback. Furthermore, speculations in the crypto market suggest a strong bullish rally as fear gradually fizzles out.
Will this breakout rally propel Bitcoin to its $103k? Let’s find out.
Bitcoin Price Action and Key Support Levels
In the 4-hour chart, the BTC price trend finally ends the streak of lower-low formations as it takes support at the 38.2% Fibonacci level at $96,700. With this lower price rejection, a short V-shaped reversal is forming.
Currently, Bitcoin trades at $98,242 and challenges a short-term resistance trendline. Along with the trendline, Bitcoin also faces opposition from the 50% Fibonacci level at $98,611.
Chaikin Money Flow and Volume Analysis
As Bitcoin aims to restart the higher-low trend formation, the Chaikin Money Flow Index reflects a minor uptick in flow as it sustains a positive trajectory at 0.12. The bulls are maintaining a solid stand.
Furthermore, the up-and-down volume reveals a significant recovery on the bullish front, with 2X up volume supporting the reversal in Bitcoin prices. Hence, price action analysis reveals a high possibility of a breakout rally.
BTC ETF Flow
Amid growing optimism for a bullish recovery in the Bitcoin market, institutional support remains strong, reinforcing the upward momentum.
BlackRock led the daily net inflows with $44.35 million, followed by WisdomTree adding $11.38 million, and Fidelity acquiring $10.65 million worth of Bitcoin.
Bitcoin Derivatives Market Outlook
Bitcoin derivatives market remains significantly bullish, despite Bitcoin open interest dropping below $60 billion. Currently, the open interest has surged 1.43% in the last 24 hours, reaching $59.65 billion.
However, over the past 24 hours, the long-to-short ratio has significantly improved. From 0.9841 to 1.0454, the number of bullish players in the market has equalized the playing field.
Funding Rate Decline – A Bearish Signal?
While the long-to-short ratio suggests an almost equal number of bulls and bears, a drop in the funding rate indicates a stronger bearish stance.
The funding rate has dropped from 0.007% to 0.0024% over the past few hours. This signals a potential shift in momentum despite the overall bullish sentiment.
BTC Price Targets
The market anticipates a potential breakout rally as Bitcoin stabilizes above $96K and shows signs of a bullish reversal. Based on Fibonacci levels, the uptrend will likely challenge the 78.6% Fibonacci level at $103,393.
However, the declining funding rate suggests lingering bearish pressure, making the $94.3K support a crucial level to watch.
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.
