Quick Summary: Bitcoin hit an intraday high of $88,804 before pulling back to $86,666. Rising open interest signals increased market activity, while long-term holders and institutional inflows boost confidence. BNB Chain also saw gains, driven by ecosystem developments. Key resistance levels ahead could determine Bitcoin’s next move.
Bitcoin Extends Recovery, Reaching $88,804 Before Slight Pullback
Bitcoin, the largest cryptocurrency by market capitalization, continued its recovery on Monday, briefly reaching an intraday high of $88,804. This surge followed a weekend low of $83,804. However, by Tuesday morning, Bitcoin was trading at $86,666, slightly lower but maintaining a bullish outlook.
Bitcoin’s Weekend Performance and Market Influences
Over the weekend, Bitcoin fluctuated around $85,000, largely impacted by concerns over inflation and broader U.S. economic conditions. The recent price increase has been accompanied by a rise in open interest, raising caution over heightened leverage risks.
According to CryptoQuant, open interest surpassed $32 billion as Bitcoin neared $88,000. While this suggests increased market activity, it also introduces the risk of liquidation cascades due to rapid price movements and elevated open interest levels.
BNB Chain Gains Momentum
BNB Chain (BNB) also saw notable gains, increasing by 2.50% in the past 24 hours and trading just below $640.
This growth was driven by key developments within its ecosystem, including 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 Holders and Institutional Interest Drive Bitcoin Stability
B.C has shown strong investor confidence, with Long-Term Holders (LTHs) steadily accumulating the asset. The Long/Short Term Holder Supply Ratio has grown significantly since late February, with a 30-day accumulation rate nearing 6% and daily increases averaging 7%. This trend reflects LTHs’ belief in long-term potential, providing stability to the market.
Additionally, Bitcoin Spot ETFs recorded inflows for the first time in a month, reversing a four-week streak of outflows. This signals renewed confidence among institutional investors and increased demand for Bitcoin exposure in macro financial portfolios.
Further supporting the bullish trend, Binance funding rates have remained positive, indicating a preference for leveraged long positions.
Key Price Levels to Watch
Currently trading at $86,630, Bitcoin has broken out of a descending wedge pattern, with an attempt to establish $86,822 as a new support level.
- If Bitcoin successfully holds above $86,822, it could advance toward the next resistance at $89,800.
- A breakout above $89,800 may propel Bitcoin to higher targets, including $93,625 and $95,000.
- Conversely, failure to breach $89,800 could lead to consolidation around $85,000, shifting market sentiment to a more cautious stance.
Despite short-term fluctuations, Bitcoin remains well-positioned to reclaim the $92,000 level, though its trajectory will largely depend on macroeconomic factors.
