Market Direction

BTC eyes $98,900 target soon

Published: Dec 31, 2024

Bitcoin ($BTC) holds $91k support while targeting $98,900 resistance. Healthy open interest pullback and spot demand drive positive momentum despite thin order books.

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.

Open Interest has pulled back from 660k coins to 606k coins over the last two weeks. An approximate 10% pullback in OI is healthy.
Funding Rates remain flat at 0.01%, indicating that there isn't excessive gambling in the futures market, as would be reflected in very high Funding Rates.

BTC open interest (by number of coins):

1. Bitcoin futures open interest and price trend over time, showing a recent 10 pullback in open interest.

Technical analysis

Bitcoin has been in a local downtrend since mid-December, and its price is at an all-time high.
So far, the price has found support in the high $91k's which was a prior all-time high resistance back in early November.
We expect the low $ 90k to hold as support in the short term. But, if the price were to break lower, we'd expect $88k to be a major support.
To the upside, BTC is moving into a local horizontal resistance at $95,700, although the price is currently attempting to push through.
Beyond $95,700, there is the local downtrend line and the more major horizontal resistance of $98,900 that price would need to break through.
The RSI is in the middle territory, although it is butting up against its moving average.

2. Bitcoin daily chart showing key support at 91,000, resistance at 98,900, and RSI near neutral zone.

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Next Support: $91,000
Next Resistance: $98,900
Direction: Neutral (Bullish)
Upside Target: $98,900
Downside Target: $91,000

Cryptonary's take

What's important to note is that between Christmas and just after New Year, the order books are quite thin, so the price can move in a volatile fashion. Currently, there is an underlying Spot bid (today) which is driving the price higher, which is good to see.

Bitcoin has looked really strong throughout the past month despite us seeing weakness in other sectors. Whilst it's possible that price remains range-bound between $91k and $96k, we are actually leaning more towards Bitcoin breaking out to the upside in the coming days.

This would have a potential target of $98,900, and we'd reassess price action around there once/if the move we're predicting happens.