Will Bitcoin price hit $130K in 90 days? Yes, says one analyst
Bitcoin (BTC) has demonstrated a significant resurgence, marking its best weekly performance in more than two months with a 4.24% increase, reaching an intra-day high of $88,804. This resurgence has propelled Bitcoin above important technical levels, particularly closing above the 200-day exponential moving average (EMA) on the daily chart, a crucial indicator of bullish momentum.
With Bitcoin closing the week above $84,600, the anticipation for testing the $90,000 level has strengthened. However, for a sustainable move towards this psychological threshold, Bitcoin must navigate past a descending resistance level that could hinder upward momentum.
### Market Dynamics and Correction Insights
Prominent Bitcoin researcher Axel Adler Jr. recently shed light on the current market dynamics. He posits that the present consolidation phase is indicative of a natural market correction rather than the onset of a bear market. This assertion is supported by on-chain metrics and Bitcoin’s Investor Price Model, which suggests that Bitcoin has not yet reached an ‘overheated’ state during this current price cycle.
Adler’s insights on Bitcoin’s cumulative value days destroyed (CVDD) further bolster the viewpoint that the market is still in a growth phase. The CVDD metric serves as a barometer for long-term holders’ selling behaviors, showing only one sell signal during this bull cycle, which initiated back in March 2024. In his analysis, Adler forecasts Bitcoin could reach an impressive $130,000 within 90 days, particularly if substantial profit-taking occurs as Bitcoin approaches pivotal price levels, like $123,000.
### Rising Open Interest and Market Sentiment
In an intriguing turn of events, Bitcoin’s open interest surged by over $1.5 billion within a single day, signaling heightened activity in futures contracts. As reported by Velo data, this uptick occurred alongside a neutral funding rate, indicating a relative balance in the bullish and bearish trader sentiment.
Despite the positive price movement, weekend rallies carry risks due to lower trading volumes, which often see major market participants retreating until the week’s start. This situation can lead to higher volatility, particularly with leveraged positions magnifying the effects of significant market moves. Crypto analyst IT Tech PL noted that the increase in open interest correlates with Bitcoin breaching the $87,500 mark, cautioned that high open interest combined with rapid price hikes could lead to potential liquidation cascades.
### Technical Analysis and Futures Outlook
From a technical analysis standpoint, Bitcoin reached a remarkable $88,750, surpassing the previous week’s peak. However, this spike also coincided with testing the upper Bollinger Band alongside the descending resistance. Analysts observe BTC oscillating within an ascending channel, which suggests potential volatility ahead.
Considering the current market dynamics, a short-term correction appears plausible, with estimates pointing towards a demand zone between $86,000 and $87,000. This correction could serve as a springboard for a more robust challenge against the $90,000 threshold.
This technical landscape sets the stage for critical decision-making moments as Bitcoin navigates through this complex phase, with many market participants keenly observing for breakout points and accompanying volume trends.
