Bitcoin’s upside: $110k projection

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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• Open Interest (the amount of leverage in the system) remains really high.
• The Funding Rate is higher than normal, but it's not currently majorly overheated. We have also seen that it has got too high over the last week (twice), and it's pulled off again without the market pulling back and flushing the leverage out.
• With Open Interest as high as it is, it's likely we will see a flush out at some point, but that may take time.

BTC funding rate:

Technical analysis

• Bitcoin broke out from its bullish pennant and broke to the upside, just stopping shy of the psychological $100k mark.
• The small consolidation of price action in the low $90k's can likely help as support if BTC were to see a pullback.
• Below $91k, the next horizontal support would be at $87,000.
• On the upside, the resistance is now at the psychological level of $100k.
• The RSI has printed a bearish divergence (higher high in price, lower high on the oscillator). A breakdown target for this might be between $91,000.

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• Next Support: $91,000
• Next Resistance: $100,000
• Direction: Neutral
• Upside Target: $110,000
• Downside Target: $91,000

Cryptonary's take

Similarly to our last update, BTC is grinding on higher as we're in this euphoria part of the cycle. However, it is very overbought here, and it has printed bearish divergences. This usually results in a bearish outcome. But because we're in the euphoria period, it's possible that the price will also continue grinding higher.

We're of the opinion that a pullback might be on the cards quite soon, but we'd be buyers of any meaningful pullback (7-15%). We expect prices to keep grinding higher, but we'll see a number of pullbacks along the way. We believe the odds of a pullback have increased here, and we wouldn't be surprised if we got one in the next few days to a week.