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Bitcoin is resuming its new recovery run fueled by institutional support. Will this lead to a surge to a new all-time high?
Amid the short-term market correction, Bitcoin’s price remains steady at key support levels. With an intraday recovery, $BTC’s price suggests the possibility of an extended rally to offset recent declines.
Will this recovery result in a breakout rally that could set a new all-time high this month? Let’s explore this possibility.
Bitcoin Price Analysis
The second consecutive bearish candle in the daily chart caused the $BTC price to drop further yesterday following the 3.69% drop on Monday. However, the low price action in the daily candles led to an intraday recovery of 0.97%, with the opening price at $96,658.
On the 4-hour chart, lower price rejections signal a bullish reversal from a long-standing support trendline. The recovery is now approaching the 23.60% Fibonacci level at $98,378.
Bitcoin’s price is currently $97,588, beginning a bullish recovery from a morning star pattern near the support trendline. The rally is now preparing to challenge the local resistance trendline.
This creates a triangle pattern on the 4-hour chart, compressing the trend momentum. With the bullish recovery, the MACD and signal lines on the 4-hour chart are poised for a bullish crossover.
Bitcoin Open Interest Falls under $60B
Due to yesterday’s bearish closing, open interest in Bitcoin has taken a substantial hit, dropping below the $60 billion mark.
Open interest stands at $59.37 billion, reflecting a 0.11% pullback over the past 24 hours. However, the open interest in options has risen by 1.54%, reaching $38.35 billion, while Bitcoin liquidations have reached $74.38 billion in the last 24 hours.
Out of this, $49.40 million came from long liquidations, indicating stronger selling pressure. Amid the pullback, the broader market experienced $517 million in liquidations, with $380.97 million coming from long liquidations.
Bitcoin ETFs See Inflows of $439.56M
Despite the short-term correction in the crypto market, institutional demand remains strong. The daily net inflow on December 10 reached $439.56 million for US $BTC spot ETFs, marking the ninth consecutive positive day for these ETFs.
Leading the bullish trend, BlackRock’s (IBIT) Bitcoin ETF recorded an inflow of $295.60 million, followed by Fidelity’s (FBTC) $210.48 million. The total net assets of US spot Bitcoin ETFs have reached $107.76 billion, accounting for 5.65% of Bitcoin’s total market cap.
Bitcoin Price Targets
As institutional support continues to rise, minor corrections may cause short-term disruptions in the ongoing bull run. However, with a bullish rebound, Bitcoin’s price will likely reach a new all-time high if it breaks above the local resistance trendline.
In the short term, a breakout at the 23.60% Fibonacci level at $98,378 on the 4-hour chart could serve as an entry point for optimistic traders. If this level is surpassed, the next target will be the 38.20% Fibonacci level at $103,102.