Bitcoin targets $66k resistance soon

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.

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• Interestingly, Funding Rates have been positive, but they've fluctuated, as Traders have tried Shorting local tops, only to then be blown out of their Shorts just a few hours later, driven by a Spot bid.
• Open Interest is up over the last day but still not at levels that would suggest it's overheated to the upside.
• Overall, BTC isn't overheated here, and from a mechanic's perspective, it could continue to grind higher.

BTC open interest:

Technical analysis

• After BTC printed the higher high, it pulled back to close to our support area (the Yellow box).
• Price has since bounced from this support area and retested the horizontal resistance of $63,400, where price continues to struggle to climb back above.
• In terms of support, the area between $60k and $62k is likely strong support. We consider the bullish structure to be intact as long as the price remains above $57k.
• On the upside, $63,400 is the local horizontal resistance, with $68,900 being the major resistance beyond that.
• The RSI has reset but is beneath the Moving Average.
• Next few days prediction: Neutral ($62k to $64k range)
• Next 7 days prediction: Bullish
• Next 7 days price target: $66k

Cryptonary's take

Price may be subdued in the run-in to Thursday's inflation data. A positive print (lower inflation) will likely help Bitcoin, and risk assets generally break to the upside, while a negative print (higher inflation) will likely negatively impact Bitcoin. It's possible we will see a few days of chop between $62k and $64k until Thursday's inflation data. We're expecting the inflation data to come in line, and Bitcoin potentially reacts positively to this.