Bitcoin, the largest cryptocurrency by market capitalization, extended its recovery on Monday, reaching intraday highs of $88,804.
This rebound followed Sunday’s low of $83,804. However, by Tuesday morning, Bitcoin was trading at $86,666, slightly lower but maintaining bullish momentum.
Over the weekend, Bitcoin hovered around $85,000, influenced by concerns about inflation and broader U.S. economic conditions.
The recent price surge has coincided with an increase in open interest, prompting a Bitcoin market alert due to heightened leverage risk.
According to CryptoQuant, open interest surpassed $32 billion as Bitcoin approached $88,000. While this indicates increased market activity, CryptoQuant warned of potential liquidation cascades tied to rapid price movements and elevated open interest levels.
BNB Chain (BNB) saw gains of 2.50% in the past 24 hours, trading just below $640.
This upward trend was supported by key developments within its ecosystem, such as the testing of a new stablecoin by World Liberty Financial—a project backed by former U.S. President Donald Trump—and the launch of a $100 million liquidity program aimed at supporting native projects on the BNB platform.
Long-Term Holder Accumulation and Institutional Interest
Bitcoin has demonstrated steady investor behavior, with Long-Term Holders (LTHs) driving consistent accumulation.
The Long/Short Term Holder Supply Ratio has shown significant growth since late February, with the 30-day accumulation rate nearing 6% and daily increases averaging 7%. This trend underscores LTHs’ belief in Bitcoin’s future potential, providing stability to the market.
Additionally, Bitcoin Spot ETFs have seen inflows for the first time in a month, reversing a four-week streak of outflows. This signals renewed confidence among macro financial investors and a growing demand for Bitcoin exposure in institutional portfolios.
These inflows, coupled with LTH accumulation, suggest Bitcoin could maintain its upward trajectory in the coming weeks.
Furthermore, Binance funding rates have remained positive, indicating a propensity for leveraged bullish (long) bets.
What you should know
- Currently trading at $86,630, Bitcoin has broken out of a descending wedge pattern, with its price attempting to secure $86,822 as support.
- If successful, BTC could continue toward the $89,800 resistance level. A sustained breakout above this level may propel Bitcoin further, with potential targets of $93,625 and $95,000.
- However, failure to breach $89,800 could lead to consolidation below this level, possibly falling back to $85,000.
Such a scenario would shift market sentiment toward caution, slowing Bitcoin’s recovery and extending its consolidation phase.
Bitcoin is well-positioned to recapture the $92,000 level, although it remains heavily dependent on overall macroeconomic conditions.
