Bitcoin stabilizes above $96,000, the cryptocurrency market is abuzz with speculation about a potential breakout rally. The latest price action hints at a strong bullish comeback, with many investors eager to see if Bitcoin will reclaim the $103K supply zone. Here’s an in-depth analysis of the current situation and the potential price targets.

Bitcoin Price Action and Key Support Levels

On the 4-hour chart, Bitcoin has broken its trend of forming lower lows and has found support at the 38.2% Fibonacci retracement level at $96,700. This lower price rejection has led to the formation of a short V-shaped reversal, suggesting the possibility of a trend reversal. Currently trading at $98,242, Bitcoin is facing short-term resistance at a trendline and the 50% Fibonacci level at $98,611. These levels must be overcome for Bitcoin to continue its upward momentum.

Chaikin Money Flow and Volume Analysis

The Chaikin Money Flow (CMF) index, which measures the volume-weighted average of money flow, has shown a minor uptick to 0.12. This positive movement indicates that bulls are regaining control. Additionally, the volume analysis reveals a significant recovery in bullish activity, with up-volume doubling, supporting the idea of a reversal in Bitcoin’s price. These signs suggest that a breakout rally is more likely, although Bitcoin still faces resistance ahead.

Institutional Support and Bitcoin ETFs

Institutional support continues to bolster Bitcoin’s bullish sentiment. BlackRock, one of the largest asset management firms, has led the daily net inflows with $44.35 million, followed by WisdomTree and Fidelity, which added $11.38 million and $10.65 million, respectively. This institutional backing adds credibility to the growing optimism for a Bitcoin recovery, reinforcing the upward momentum.

Bitcoin Derivatives Market Outlook

The Bitcoin derivatives market remains bullish, even though Bitcoin’s open interest recently dropped below $60 billion. In the last 24 hours, the open interest has increased by 1.43%, reaching $59.65 billion. This indicates growing interest from traders. However, the long-to-short ratio has improved from 0.9841 to 1.0454, signaling that bullish and bearish sentiment are now more balanced. Despite this, a decline in the funding rate from 0.007% to 0.0024% over the past few hours indicates that some traders are growing cautious, which may signal a shift in momentum.

Bitcoin Price Targets and Key Levels to Watch

The market is anticipating a breakout rally as Bitcoin stabilizes above $96K. If Bitcoin manages to break through the 50% Fibonacci resistance at $98,611, the next target could be the 78.6% Fibonacci level, which sits near $103,393. This price point is crucial in determining the strength of Bitcoin’s bullish momentum. However, the decline in the funding rate suggests that some bearish pressure remains. As a result, the $94.3K support level will be an essential level to watch. If Bitcoin holds above this, it could continue its rally toward $103K.

In conclusion, Bitcoin’s current price action signals a possible bullish reversal. The market is eyeing a breakout above the $98,611 resistance level, with the $103K target in sight. However, the declining funding rate and increased bearish sentiment may act as obstacles, making the $94.3K support level critical in maintaining the upward momentum. The next few days will be crucial in determining whether Bitcoin can sustain its bullish trend and reach new highs.