Bitcoin (BTC) achieved its best weekly gains in more than two months, rising by 4.24% to reach an intraday peak of $88,804. The cryptocurrency also restored a bullish outlook on the charts, finishing above the 200-day exponential moving average (EMA) on the daily chart.
Bitcoin 1-day chart. Source: Cointelegraph/TradingView
With a weekly close above $84,600, the chances of BTC testing $90,000 have improved. However, the price must first breach the descending resistance level to make a sustainable advance towards the range highs.
Bitcoin Pullback Seen as a “Healthy Pause”
Bitcoin analyst Axel Adler Jr. emphasized that, according to onchain data, the current price cycle indicates a healthy consolidation, not the onset of a bear market. He noted that BTC has not yet reached “overheated” levels in this cycle, as per the Bitcoin Investor Price Model.
This model had given sell signals twice during 2021 and includes metrics such as the realized cap, thermo cap, investor price, and Bitcoin supply.
Using Bitcoin’s cumulative value days destroyed (CVDD), Adler asserted that the market is still in a “growth stage.”
Bitcoin cumulative value days. Source: adlercryptoinsights / Substack
The CVDD metric tracks selling trends among long-term holders. During the current bull cycle (2024-2025), a sell signal was recorded only once, in March 2024. In a Substack article, Adler stated,
“Given the current market dynamics, we could see experienced investors taking profits once Bitcoin hits key peak levels ($123K), which might apply downward pressure on the price.”
From this analysis, Adler Jr. predicted that Bitcoin could rise to $130,000 within a 90-day frame.
Related: Bitcoin must reclaim this key 2025 level to avoid new lows — Research
Bitcoin Open Interest Surges by $1.5 Billion in 24 Hours
According to data from Velo, Bitcoin’s open interest (OI), which indicates the total value of outstanding futures contracts, surged by over $1.5 billion within the last 24 hours.
Meanwhile, the funding rate, which represents the cost of holding leveraged positions, remained close to neutral. This implies that neither bullish (long) nor bearish (short) traders had a dominant presence.
Bitcoin price and aggregated open interest. Source: Velo.chart
Bitcoin saw a spike in upward momentum late on Sunday, March 23rd. Such weekend rallies often happen with lower trading volumes since larger market players usually refrain from trading until the week starts. In this context, leveraged trades can significantly influence price movements.
On X, an anonymous crypto analyst, IT Tech PL, pointed out the rise in OI after BTC surpassed $87,500. However, the analyst cautioned,
“Here’s the catch: High OI + Rapid Price Increase = Risk of Liquidation Cascades!”
Bitcoin 4-hour chart. Source: Cointelegraph/TradingView
From a technical standpoint, Bitcoin recorded a new high at $88,750, surpassing the previous week’s peak. As illustrated in the chart, the price tested the upper Bollinger Band and the descending resistance. In addition, BTC is moving within an ascending channel.
Given this confluence, BTC may experience a short-term correction to test the demand zone around $86,000-$87,000 before making a break above the $90,000 mark.
Related: Michael Saylor’s Strategy surpasses 500,000 Bitcoin with latest purchase
This article does not constitute investment advice or recommendations. Every investment and trading action carries risks, and readers should conduct their own research before making any decisions.
