BTC tests major support amid pullback pressure

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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• Bitcoin's Open Interest has pulled back from its highs as the price has pulled back.
• BTC's Funding Rate was towards the 0.01% mark, but upon the OI pullback, the Funding Rate has moved closer to 0.00%.
• This is a relatively healthy setup from a mechanics perspective, with no signs of froth or excess.

BTC's Open Interest (by USD value):

Technical analysis

• Bitcoin has fallen out of its main uptrend line, with price also losing the horizontal level of $106,900.
• There is a support zone between $102,500 and $105,000. Price has so far found support in this zone.
• If price breaks below $102,500, then the next zone of support is likely to be between $95,700 and $98,900.
• To the upside, the key level for BTC to reclaim is $106,900, and then beyond that, it's the all-time high of $111,900.
• BTC does look to be forming a 'Head & Shoulders' pattern (which we have marked out on the chart). These formations have a bearish bias, with the likely breakdown target being at least $98,900.
• This price pullback has allowed the RSI to reset, pulling back to middle territory from having been close to overbought.

• Next Support: $102,500
• Next Resistance: $106,900
• Direction: Bearish
• Upside Target: $106,900
• Downside Target: $95,700

Cryptonary's take

BTC is at a critical juncture here. Price has broken below its main uptrend line and it's now below its first major line of support, whilst it's now forming a bearish candle formation. It's possible that $103k is the extent of the pullback however, our expectation is that there's much further to go here, with the first major pullback target area being between $95,700 and $98,900.

For now, we're remaining patient as our expectation is that we'll see the price move lower in the coming 1-2 weeks, with the mid-90k's being that target area. At that time, we'll reassess the data to see if we'll begin re-accumulating BTC again in the mid-90k's.