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- Bitcoin targets $113,386 as a Falling Wedge pattern and rising open interest suggest a breakout.
- Institutional buying and reduced Bitcoin supply on exchanges support a bullish price move.
- Political changes and inflation fears boost demand for Bitcoin as a hedge against economic risks.
Bitcoin’s price action suggests a potential breakout from a Falling Wedge pattern. This setup often leads to upward moves. Analysts predict a 20.7% increase, targeting $113,386 in the near term.
$BTC (Bitcoin) looks to be working on a breakout of a Falling Wedge Pattern here and we are targeting $113,386 in an over +20.7% increase! pic.twitter.com/3Wtay3Q6zD
— JAVON⚡️MARKS (@JavonTM1) January 1, 2025
Rising Open Interest Shows Growing Participation
Open interest in Bitcoin futures has risen sharply among exchanges in the past one year. This signals more traders entering the market with stronger confidence. Higher open interest often leads to bigger price movements during breakouts.
Bitcoin’s supply on exchanges continues to drop. Fewer BTC coins available for sale reduce selling pressure. This trend supports higher prices as demand increases.
Momentum indicators like the Relative Strength Index (RSI) show bullish divergence. RSI forms higher lows while price forms lower lows. This signals a potential reversal and strengthens the breakout case.
Institutional Buying Boosts Confidence
Big companies are buying BTC as a hedge against inflation. Firms like MicroStrategy and Metaplanet have added significant amounts to their holdings. This trend reinforces Bitcoin’s role as a long-term store of value.
Institutional investments support market stability and attract more buyers. These purchases align with rising demand for alternative assets. Lower exchange supply and increased accumulation by large players further strengthen Bitcoin’s price outlook.
Political Events and Macro Trends Fuel Demand
Donald Trump’s inauguration in January 2025 is adding speculation to the market. Political events often influence investor behavior and risk appetite. Economic policy changes could drive more interest in Bitcoin as a store of value asset.
Global economic uncertainty continues to push investors toward Bitcoin. Many see it as a hedge against inflation and economic instability. Rising inflation fears strengthen Bitcoin’s appeal as digital gold.
Preparing for a Breakout
Bitcoin traders are watching resistance levels closely. A breakout must occur with strong trading volume to confirm the move. Without volume, the breakout may fail, leading to consolidation.
If Bitcoin breaks above resistance, it could quickly reach $113,386. Strong fundamentals and bullish technicals support this target. Bitcoin appears ready for its next major move.