TLDR
- Bitcoin reached an intra-day high of $88,804, climbing 4.24% in its best weekly performance in over two months
- Researcher Axel Adler Jr. predicts Bitcoin could reach $130,000 within 90 days based on onchain metrics
- Bitcoin’s open interest jumped by over $1.5 billion in 24 hours while funding rates stayed neutral
- Technical indicators show Bitcoin testing the upper Bollinger Band alongside descending resistance
- Analyst Michaël van de Poppe expects the upward trend to continue toward $90,000 in the coming days
Recent Performance Shows Strong Momentum
Bitcoin has delivered its best weekly performance in over two months. The leading cryptocurrency climbed 4.24% to reach an intra-day high of $88,804. This price action helped BTC reclaim a bullish stance on the charts.
The cryptocurrency closed above the daily chart’s 200-day exponential moving average. With a weekly close above $84,600, the chances of BTC testing the $90,000 level have increased. However, Bitcoin must overcome the descending resistance level to make a sustainable move at the range highs.
Bitcoin researcher Axel Adler Jr. explained that current price activity reflects healthy consolidation. This is not the beginning of a bear market, according to his analysis of on-chain metrics. Adler noted that BTC has not yet entered “overheated” territory in this cycle.
The assessment is based on Bitcoin’s Investor Price Model. This metric flashed a sell signal twice during 2021. The model incorporates realized cap, thermo cap, investor price, and Bitcoin supply.
Adler also used Bitcoin’s cumulative value days destroyed (CVDD) in his analysis. This metric monitors selling activity among long-term holders. The current bull cycle triggered a sell signal just once, back in March 2024.
“Considering the current market dynamics, we might see seasoned investors taking profits once Bitcoin breaches key peak levels ($123K), potentially exerting downward pressure on the price,” Adler wrote in a Substack article. Based on this analysis, he predicted that Bitcoin could climb to $130,000 within 90 days.
Market Indicators Show Growing Interest
Bitcoin’s open interest (OI) jumped by over $1.5 billion in the last 24 hours. Open interest represents the total value of outstanding futures contracts in the market. This data comes from Velo, a market analytics platform.
The funding rate stayed near neutral during this time. This suggests that neither bullish (long) nor bearish (short) traders were dominantly in control of the market. The balanced funding rate indicates a healthy market structure.
Bitcoin experienced a surge in upward momentum late on Sunday, March 23rd. Weekend price rallies often occur with lower trading volume. This happens as larger market participants tend to step back until the start of the week.
In such scenarios, leveraged trades can heavily influence price movement. Anonymous crypto analyst IT Tech PL pointed out the OI level rise after BTC exceeded $87,500. However, the analyst cautioned: “But here’s the catch: High OI + Rapid Price Increase = Risk of Liquidation Cascades!”
From a technical perspective, Bitcoin registered a new high at $88,750. This exceeded the previous week’s top price. However, the price tested the upper Bollinger Band alongside the descending resistance.
BTC is also oscillating within an ascending channel. Based on this confluence of factors, Bitcoin could see a short-term correction. This might test the demand zone around $86,000-$87,000 before breaking through the $90,000 threshold.
The current price action aligns with other technical indicators. The Relative Strength Index remains below overbought territory. This suggests there’s still room for growth in the current move.
Expert Forecasts Support Bullish Outlook
According to cryptocurrency analyst Michaël van de Poppe, Bitcoin is currently experiencing a solid upwards trend. He expects this trend to continue towards the $90,000 mark in the coming days.
This prediction comes as Bitcoin’s market cap increased to $1.5 trillion. The cryptocurrency continues to maintain its dominant position in the market. Its movements often influence the broader crypto market.
The correlation between Bitcoin and other cryptocurrencies remains strong. Ethereum and other altcoins have also shown positive price movement as Bitcoin rallies. This suggests that Bitcoin’s upward momentum could lift the entire market.
The Fear and Greed Index shows the market is in “greed” territory. This indicates strong market sentiment that could continue to drive the price higher. However, extreme greed can sometimes signal a potential reversal.
Bitcoin’s price staying above both the 50-day and 200-day moving averages supports the bullish case. These indicators show a strong upward trend that may continue in the short to medium term.
Network activity metrics add further credibility to the bullish outlook. The number of active addresses increased compared to previous periods. This suggests growing adoption and interest in the cryptocurrency.
The MVRV ratio, a key indicator of market valuation, shows Bitcoin trading at a premium compared to its realized value. While this suggests potential overvaluation, it has not reached extreme levels that would signal an imminent correction.
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