Bitcoin is now testing key resistance levels as the Bulls try to restore momentum on the daily chart and print out higher highs. After months of continuous pressure, BTC seems to have found support, providing the potential for a decisive trend reversal. Bitcoin has been on a sustained downward trend since reaching its peak in January, with lower highs and bullish beliefs weakening. Now, with the pressure of price against key resistance, everyone’s eyes are focused on whether the bulls can send out a breakthrough and change the narrative.
However, caution is required. According to new insights from CryptoQuant, the market is currently experiencing a considerable period of increased 24-hour open interest. While this surge reflects growing trader participation, it also marks a rise in speculative positions, especially in the derivatives market. Historically, the rapid increase in open interest, especially in cases associated with positive long positions, can be before a short-term correction or failed gathering.
Whether Bitcoin can maintain its current power or whether it will suffer a sharp rejection remains to be seen; it depends on spot demand. It is clear that the next few days will be crucial to determine whether BTC is rid of the downward trend or remains in trouble.
Bitcoin faces resistance as derivative pump fuel is cautiously optimistic
Bitcoin remains stable and shows signs of resilience amid global tensions and ongoing market uncertainty. As price action turns to bullish speculation, analysts begin to see the potential for a rebound in the coming months. After a period of close merger last week, BTC has now been against critical resistance, and this week could be decisive in determining the next major move for the asset.
As sales pressures appear to be fading, bulls are gaining appeal, allowing the market to start pricing with broader macroeconomic development. However, not all indicators point to clean breakthroughs. According to CryptoQuant Analyst Darkfost, Bitcoin is currently experiencing its largest 24-hour open interest (OI) for quite some time. Historically, this spike in OI (mainly driven by derivatives activity) has been warning of short-lived gathering signals.
The most famous OI increase was about 15% to 16% during the observed period, recording strong momentum in November 2024 and December 2024. At that time, the aggressive derivatives trading at that time was supported by the strong support of the spot market. Today, this story is unique. While OI has risen sharply, the price has risen by only 4.2%, compared to 10% and 7% in similar settings in the past.
This divergence suggests that despite the momentum being built, sales pressure remains high. The Bulls will need to recover the $90,000 level and maintain a breakthrough beyond key resistance to confirm the real reversal. Until then, Bitcoin’s path remains cautious – high leverage activity suggests volatility.
BTC test $88K key breakthrough zone
Bitcoin is currently trading around $88,000 after setting the fresh 4-hour high $88,870 to $88,870, a strong continuation of last week’s uptrend. As BTC climbs towards a critical resistance zone, the Bulls are getting bigger, but the real test is on the way. To confirm the breakthrough and launch a sustained recovery rally, Bitcoin must decisively exceed the $90,000 level.
Price action so far reflects the buyer’s growing interest, but holding more than $88,000 is crucial to maintaining short-term strength. Now, this level is an immediate requirement and must be defended to avoid reversals. Rejection in this area could lead to a retest of the $85,000 support zone, which could lead to higher lows if the bullish structure holds.
Traders are closely watching the clean breakout above $90K, which may trigger upside and emotional changes. However, any weakness or failure to maintain current gains may invite profitable or new short positions. With the increase in global macro uncertainty and derivative-driven activity, BTC remains in a critical area where momentum (in either direction) accelerates in the next few days.
Featured images from DALL-E, charts from TradingView
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