- Bitcoin breakout from descending wedge signals $135,000 target if support holds.
- Imbalance in open interest suggests a market reset could fuel Bitcoin’s bullish trend.
- Holding above $103K crucial for maintaining momentum toward $130K–$135K in 2025.
Bitcoin has broken out of a right-angled descending broadening wedge. If price holds above the breakout zone, $135,000 becomes a realistic target. Structure is clean. At the time of writing, Bitcoin is trading at $105,812.77, with analysts closely monitoring key support and resistance levels.
Open Interest and Leverage Suggest Market Reset Needed
According to analysis prepared by DaanCryptoTrades, the recent price action shows a notable imbalance between price movement and open interest. The green zone on his chart showed a 42% gain with 30,000 BTC added in aggregated open interest.
The red zone, however, added 45,000 BTC but resulted in only an 8% price increase. This indicates a buildup of leveraged long positions, particularly around the $108,000 to $110,000 range.
Much of that open interest appears trapped and has yet to unwind. DaanCryptoTrades added that a reset in open interest back to a lower base would help clean up market structure and support further bullish continuation.
Price Holds Above Key Support as Demand Grows
Bitcoin recently rejected from the Fair Value Gap between $106,266 and $106,723, after bouncing from the Point of Control at $103,897. This zone recorded the highest trading volume during May’s consolidation. Holding above $103,000 remains essential to maintaining bullish momentum.
Open interest remains elevated while the long-to-short ratio on futures platforms reflects strong long positioning. CoinGlass data shows ongoing trading activity with Bitcoin consolidating above $105,000 for a record 27 days. Spot ETF inflows and institutional buying continue to support the current trend.
Analyst Trader Tardigrade stated that Bitcoin is now trending above the long-term channel after a clean breakout. If structure holds and volume supports the move, the next upside target between $130,000 and $135,000 may come into view during 2025.
