Bitcoin (BTC) achieved its highest daily close in over ten days on April 21, reclaiming the $65,000 level. The price of BTC rose from a low of $64,346 on April 21, increasing by 3.5% to reach an intraday 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, representing a 1.7% increase over the last 24 hours.
The price of Bitcoin has risen by 5% since the Bitcoin supply halving two days ago, where miner rewards were reduced from 6.25 BTC per block to 3.125 BTC. Some market participants are now speculating on whether Bitcoin will continue its upward trend post-halving.
Let’s examine the factors that could drive BTC’s price up in the coming months.
Bitcoin open interest reflects 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 is typically seen after significant price movements, such as the 5% increase in Bitcoin’s price between April 20 and April 22.
The recent drop in Bitcoin OI to below 0% marked the lowest levels in over six months, a similar pattern observed in October 2023, as pointed out 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 shows strength above $60,000
Last week, Bitcoin’s price action involved 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, stating that the zone between $65,000 and $66,000 was a “sticky” area for Bitcoin’s price.
Note that BTC has since surpassed this zone and now sits on relatively strong support defined by this demand area. This is supported by data from IntoTheBlock, whose In/Out of the Money Around (IOMAP) model shows that BTC price has strong support on the downside compared to resistance in its recovery path.
The IOMAP chart indicates that this zone falls within the $64,380 to $66,338 price range, where approximately 638,330 BTC were previously bought by 1.31 million addresses.
Continuing, popular crypto analyst Rekt Capital stated that BTC price has established strength above the $60,000 mark.
According to the anonymous trader, Bitcoin is likely to accumulate between the $60,000 range low and $70,000 range high for a few months in a “re-accumulation” phase before experiencing a “post-halving parabolic upside.”
With the Bitcoin fourth halving now complete, market participants are considering how Bitcoin’s price will react in the aftermath.
One pseudonymous user, Moustache, shared a chart tracking Bitcoin’s price action since it reached its previous peak in 2021. According to Moustache, the next significant 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 on the weekly chart, indicating the continuation of the uptrend.
BTC bulls may face resistance from the upper boundary of the flag at $67,500. However, a weekly candlestick close above this level would signal a potential breakout from the chart formation, clearing the path to the all-time high of $73,835 and later to the $80,000 mark. This 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.