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 increased from a low of $64,346 on April 21, rising by 3.5% to reach a high of $66,527 on April 22.
According to data from Cointelegraph Markets Pro and TradingView, BTC was trading at $65,910 at the time of publication, reflecting a 1.7% increase over the past 24 hours.
The price of the pioneering cryptocurrency has risen by 5% since the Bitcoin supply halving two days ago. This event resulted in a reduction of miner rewards, from 6.25 BTC per block to 3.125 BTC. Some market participants are now speculating on whether Bitcoin will continue its upward trend following the halving.
Let’s examine the factors that could drive BTC’s price up in the coming months.
Bitcoin open interest mirrors October 2023
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 the positive region, resting at 0.0079% on April 22. This indicates an increasing appetite for long positions.
This shift in market sentiment often becomes apparent 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 similar occurrence observed in October 2023, as noted by X user Tedtalksmacro.
Bitcoin’s price has risen by 146% since October, and if a similar scenario unfolds, BTC could lead the broader market in a sustained rebound.
Bitcoin price finds strength above $60,000
Last week, Bitcoin’s price action was characterized by selling at each Wall Street open. Analyzing the current technical setup, independent trader Skew described the weekly close above $65,000 as “pretty good.”
In a previous tweet, the trader shared a chart with his followers, indicating that the zone between $65,000 and $66,000 posed a significant resistance level for Bitcoin’s price.
It is worth noting that BTC has since surpassed this zone and now finds support in a relatively strong demand area. This is reinforced by data from IntoTheBlock, which shows that BTC price has strong support on the downside compared to the resistance in its recovery path, as indicated by their In/Out of the Money Around (IOMAP) model.
The IOMAP chart reveals that this support zone falls within the price range of $64,380 to $66,338, where approximately 638,330 BTC were previously bought by 1.31 million addresses.
According to popular crypto analyst Rekt Capital, Bitcoin has established strength above the $60,000 mark. The analyst suggests that Bitcoin is likely to consolidate between the range of $60,000 and $70,000 for a few months during a “re-accumulation” phase before experiencing a “post-halving parabolic upside.”
Traders anticipate Bitcoin’s post-halving upside
With the Bitcoin fourth halving now complete, traders are considering how the price of Bitcoin will react in the aftermath.
One trader, pseudonymously known as Moustache, shared a chart that tracks Bitcoin’s price action since its previous peak in 2021. According to Moustache, the next important 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 bull flag pattern on the weekly chart, indicating a continuation of the upward trend.
BTC bulls face resistance from the upper boundary of the flag at $67,500. A weekly candlestick close above this level would signal a potential breakout from the chart formation, 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.
Please note that this article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making a decision.