Market Direction

Bitcoin holds key support, Eyes breakout again

Published: May 27, 2025

Bitcoin is consolidating near all-time highs with rising open interest and balanced leverage, signaling a potential breakout and setting the stage for broader market opportunities.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

BTC's Open Interest has increased to new highs, whilst the Funding Rate is positive but still contained. This suggests that a lot of leverage has been applied recently, but that it's evenly balanced between Longs and Shorts.

BTC's open interest (by USD value):

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Technical analysis

Bitcoin remains in its main uptrend after having broken out to new all-time highs.
To the downside, the key zone of support is between $105,000 and $106,900. Price has remained above this zone, and used it as support several times already. This is the key level for price to hold.
Below $105,000, the major horizontal support level is at $98,900.
To the upside, the all-time high of $111,900 is the horizontal resistance. Beyond that, $120,000 is the next horizontal resistance.
Over the last few days, BTC has been range-bound between $107,000 and $110,000. A period of consolidation is healthy during larger uptrend patterns.
The RSI has pulled back from overbought territory, and a period of resetting this metric is positive. However, the RSI is now below its moving average, which is also overbought.

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Next Support: $106,900
Next Resistance: $111,900
Direction: Neutral/Bullish
Upside Target: $120,000
Downside Target: $98,900

Cryptonary's take

After breaking out to new all-time highs, BTC has remained range-bound at the highs, whilst the overall amount of leverage has increased, it is not yet in frothy territory.

As all-time high breakouts go, this is a healthy breakout. This suggests that there could be more upside to be had in the near term following a small period of consolidation in the very short term. BTC's move continues to be supported by strong ETF flows and a weakening Dollar backdrop.

Our near-term price target for BTC is $120,000. This kind of BTC breakout will likely bring many more opportunities across the rest of the space, which we'll be on the lookout for and keen to take advantage of.