The market leader has made a significant comeback, as Bitcoin has risen to a new all-time high of $106,000. Strong market fundamentals and increasing institutional interest have supported investor sentiment, as evidenced by this breakout, which highlights $BTC ongoing momentum.
As Bitcoin open interest hits an all-time high of $67 billion, the spike to $106,000 is a blatant indication of heightened interest in derivatives markets. Because leveraged positions magnify both upward and downward movements, elevated open interest can increase volatility, even though it usually indicates strong speculative activity.
The next significant resistance level for Bitcoin after this remarkable ATH is probably around $110,000. There may be a lot of selling pressure at this psychological barrier as investors try to lock in profits. The next target would move toward $120,000 if Bitcoin keeps up its bullish momentum and breaks through $110,000, helped by growing institutional inflows and widespread adoption.
Bitcoin has solid support on the downside close to the $98,000 mark, where buyers have defended important levels in the past. If a brief retracement happens, the 50 EMA on the daily chart, which is presently trading at about $97,000, will offer an extra layer of support for Bitcoin. The market as a whole has risen since Bitcoin's return to its all-time high, which has increased hope for altcoins.
In the past, as investors look for chances for larger returns, new highs for Bitcoin have caused capital to shift into alternative assets. This situation might recur, with #Ethereum and other significant altcoins profiting from the optimism surrounding Bitcoin.