TL;DR
- Bitcoin broke above $108,000, driven by perpetual futures buying and short position pressure, posting a weekly gain of over 3.3%.
- BTC trading volume surged more than 30% in 24 hours, though analysts warn that high leverage levels could stall the rally’s momentum.
- The $106,500–$107,000 zone remains a key resistance; a firm close above that range could trigger a fresh rally toward $120,000.
Bitcoin climbed past $107,000 once again, reaching an intraday high of $108,046. This move marked a weekly increase of more than 3.3%.
Open Interest and High Leverage Levels
The rally was fueled by a sharp rise in open interest and increased trading volume, particularly in the perpetual futures market. This environment sparked new expectations among traders, though analysts continue to urge caution given the high levels of accumulated leverage.
The price jump coincided with a surge in activity from traders attempting to trigger liquidations of short positions placed near last week’s highs. DaanCrypto, an analyst closely following derivatives data, warned that these sharp moves are often accompanied by spikes in leverage, which can lead to sudden pullbacks if overleveraged positions aren’t cleared out first. He believes that a controlled reduction of risk would provide a stronger base for a sustainable upward move.
Technical charts identify the $106,500 to $107,000 range as a critical resistance area. This level previously acted as support during Bitcoin’s last all-time high and now serves as a short-term barrier. Michaël van de Poppe noted that a solid close above this range could open the way for a more defined bullish trend and set the stage for new records in the near term.
Can Bitcoin Reach $120K?
Bitcoin (BTC) is currently trading at $107,819 per unit, up 1.7% in the past 24 hours. Its trading volume climbed over 30.5% during the same period, while total market capitalization hovers around $2.14 trillion. This surge in activity follows a recovery in crypto market confidence after a week of high volatility. However, specialists agree the rally will only hold if BTC remains above $107,000 and part of the excess leverage in derivatives is cleared.
Some analysts suggest that if this scenario stabilizes, Bitcoin could head toward $120,000 in the coming weeks. Meanwhile, several altcoins are also starting to flash technical signals pointing to potential bullish breakouts
