Bitcoin (BTC) appears to be rebounding from its recent pullback after reaching a new all-time high (ATH) of $99,645 on November 22. Despite liquidations exceeding $500 million during the downturn, the event did not trigger the cascading sell-offs seen in previous market cycles.
Bitcoin Open Interest Resets: Is $100,000 Next?
The flagship cryptocurrency seems ready to make another attempt at the $100,000 milestone. According to crypto analyst Byzantine General, the recent BTC price pullback reset open interest to levels last observed when the asset first touched $90,000.
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Critically, Bitcoin held support around $90,875, signaling the potential establishment of a new consolidation phase before the next upward move. Byzantine General stated that BTC is poised to โtake out the local highs and potentially take a stab at piercing 100k,โ noting:
A lot of the passive supply already got taken out in the previous attempt, so thereโs a pretty good chance that we will see 100k soon.
Byzantine Generalโs thoughts were echoed by prominent crypto trader Jelle, who said that $100,000 for BTC was โin sight.โ The trader shared the following chart where BTC appears to be breaking through a downward-sloping trendline. At the same time, it is also forming an inverse head-and-shoulders pattern โ typically a bullish indicator.
Another crypto analyst Daan Crypto Trades agreed that Bitcoin is within reaching distance of the $100,000 mark. As previously reported, some analysts believe that BTC is mirroring its price action from 2023, which could see the assetโs price reach as high as $200,000 by early 2025.
Healthy Corrections Essential To Fuel Long-Term Growth
Bitcoin was trading just above $69,000 on November 6 before surging past its previous ATH and reaching its current price of $97,150 โ a staggering 40.8% gain in less than a month. However, such a rapid rally could signal an overextension.
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A slight correction to the low $90,000 level might just have been what was required for BTC to have a more sustained price momentum going forward. Further, it gives time to retail investors โ who have been missing from the current market rally โ to enter the market and potentially increase the demand-side pressure.
The recent price pullback also cooled down the Bitcoin Fear & Greed Index from extreme greed to more moderate levels, setting the stage for a more organic and sustainable rally across the cryptocurrency market.
Speaking of long-term forecasts, Pantera Capital founder and managing partner Dan Morehead recently predicted an ambitious price target of $740,000 BTC by 2028. At press time, BTC trades at $97,150, up 1.4% in the past 24 hours.
Featured image from Unsplash, charts from X and Tradingview.com
