By Chris Hollingworth 
Bitcoin (BTC) had an impressive week, marking its best weekly performance in over two months with a 4.24% increase, reaching an intra-day high at $88,804. The cryptocurrency also demonstrated a bullish momentum by closing above the daily chart’s 200-day exponential moving average (EMA).
With a weekly close above $84,600, there is a growing possibility of BTC testing the $90,000 level. However, for a sustained move towards the range highs, Bitcoin’s price must overcome the descending resistance level.
Bitcoin researcher Axel Adler Jr. analyzed onchain metrics and suggested that the current price cycle reflects a period of healthy consolidation rather than the onset of a bear market. He pointed out that BTC has not reached an “overheated” state in this cycle, as indicated by BTC’s Investor Price Model, which incorporates metrics like realized cap, thermo cap, investor price, and Bitcoin supply.
Adler Jr. highlighted the significance of Bitcoin’s cumulative value days destroyed (CVDD) metric, which tracks selling activity among long-term holders. During the current bull cycle (2024-2025), a sell signal was triggered only once in March 2024. Adler predicted that seasoned investors might start taking profits once Bitcoin surpasses key peak levels, like $123,000, potentially exerting downward pressure on the price.
In another development, Bitcoin’s open interest (OI) surged by over $1.5 billion in the last 24 hours, according to Velo data. Despite this increase, the funding rate, reflecting the cost of holding leveraged positions, remained near neutral, indicating a balanced presence of both bullish and bearish traders in the market.
Over the weekend, Bitcoin witnessed a surge in upward momentum, a phenomenon often accompanied by lower trading volume as larger market participants tend to wait until the start of the week to engage actively. Leveraged trades could play a significant role in influencing price movements during such periods.
From a technical standpoint, Bitcoin reached a new high at $88,750 but faced resistance at the upper Bollinger Band and descending resistance levels. The cryptocurrency is also moving within an ascending channel, suggesting a potential short-term correction towards the demand zone around $86,000-$87,000 before attempting to break through the $90,000 threshold.
It’s essential to note that this article does not provide investment advice. All investment and trading decisions involve risks, and readers are advised to conduct their research before making any financial decisions.
