Bitcoin’s price surge above $97,000 has captured the attention of investors and analysts alike, pushing the cryptocurrency closer to the psychological barrier of $100K. With this price milestone potentially attracting massive buying volume, many are speculating that Bitcoin will soon set a new all-time high (ATH). However, while the outlook for Bitcoin seems optimistic, a significant price correction is anticipated after it achieves a new ATH.

Market Strength and Bullish Sentiment

The cryptocurrency market capitalization recently surpassed the $3 trillion mark, signaling strong growth in the space. As Bitcoin approaches the $100K mark, the influx of capital into the market has fueled bullish sentiment. On-chain data shows that whales and long-term holders are accumulating Bitcoin, contributing to a supply squeeze that has pushed the price upward.

Bitcoin’s ascent is also supported by key technical indicators. The cryptocurrency has been consolidating for over a week, triggering a breakout above the established range. As a result, Bitcoin is moving closer to $100K, and many believe that it will continue to rise and form a new ATH. This expectation is further fueled by the increasing institutional interest in Bitcoin, as major financial firms begin to invest in Bitcoin-backed exchange-traded funds (ETFs) and other related products.

Peter Brandt’s Parabolic Curve Theory

Veteran trader Peter Brandt has shared a historical chart of Bitcoin, showing that in 2021, the cryptocurrency followed a parabolic curve that led to a new ATH. According to Brandt, Bitcoin’s price is currently below this curve, but a rise above it could trigger a powerful bull run. Brandt predicts that Bitcoin could reach between $125,000 and $150,000 by August or September 2025.

This forecast, while optimistic, comes with a caveat. Brandt and other analysts caution that once Bitcoin achieves a new ATH, it may face a significant price correction. The potential for a 50% or greater pullback after hitting new highs is a scenario that many investors need to consider.

The Open Interest Dilemma

While the overall market sentiment remains bullish, Bitcoin’s open interest—a key indicator of investor sentiment—raises concerns. Open interest refers to the total number of open contracts (both long and short) in the market, which can provide insight into the balance of bullish and bearish bets.

As Bitcoin approaches the $100K mark, open interest is still negative, indicating that short positions dominate. A rise in open interest suggests that longs (investors betting on price increases) are paying the shorts (investors betting on price declines), which can signal a shift in sentiment. However, the negative open interest data suggests that a bearish sentiment may still prevail despite Bitcoin’s rising price.

Bitcoin Funding Rate and Bearish Signals

Data from Coinanalyze reveals that Bitcoin’s funding rate has turned negative, indicating that the shorts are in control. The funding rate is a mechanism used in perpetual futures markets to balance the price of futures contracts with the spot price of the underlying asset. When the funding rate is negative, it suggests that traders are more inclined to bet against Bitcoin’s price movement, which could put downward pressure on the cryptocurrency in the short term.

The Post-ATH Correction

Even if Bitcoin reaches the predicted range of $125,000 to $150,000, the possibility of a post-ATH correction looms large. Historically, Bitcoin has experienced significant price retracements after setting new all-time highs. Analysts warn that after Bitcoin hits new highs, a correction of 50% or more is possible, especially if the funding rate remains negative and investor sentiment shifts.

Conclusion: Monitoring Bitcoin’s Next Moves

As Bitcoin approaches the $100K mark, all eyes are on its next price action. While a new ATH is expected to come soon, investors should remain cautious, as a sharp correction may follow. The combination of negative open interest, a negative funding rate, and a potential change in market sentiment could lead to a pullback after Bitcoin’s anticipated rally.

For now, the key takeaway is that while Bitcoin’s price may surge to $125,000 or even $150,000 by September 2025, caution is necessary. Investors must be prepared for possible corrections and remain agile as the market continues to evolve. The path to a new ATH may be paved with volatility, so careful monitoring of market indicators will be essential in navigating the upcoming price fluctuations.