Bitcoin Price Rebounds to $84,000, Here Are the Key Levels to Watch

Bitcoin price rebounds above $84,000 as selling slows. Traders eye $86,000 resistance and $78,000 support.

Bitcoin price has stabilized above $84,000 as selling pressure eases.

Futures open interest increased by more than 1%, signaling renewed market activity.

Traders are eyeing $86,000 resistance and $78,000 support.

Bitcoin, the world's largest cryptocurrency, is back in the spotlight after its price revisited the $84,000 mark. This price action suggests a period of stability could be in the offing after a recent negative trend.

The broader digital asset market is also undergoing a major shift, driven by waning selling pressure and growing institutional demand.

Bitcoin price remains at $84,000 as selling slows

The price of Bitcoin is $84,306.76, up 2.62% in the past 24 hours. Similarly, BTC's trading volume has jumped 35.95% in 24 hours to about $27.58 billion.

Notably, the circulating supply is 19,844,915 BTC, with a market cap of about $1.675 trillion.

The latest data from CoinGlass shows that the number of open contracts in Bitcoin futures has grown significantly. If anything, it is that traders have increased their participation. The total open interest of BTC futures on major exchanges exceeded $103.04 billion, an increase of more than 1%.

In addition, CryptoQuant analyst Axel Adler Jr. pointed out that the selling pressure on major exchanges has dropped significantly. Daily selling has dropped from 81,000 BTC to 29,000 BTC, which means that there are fewer traders selling their positions.

Experts also speculate that the reduction in selling activity could lead to a supply shortage in the coming weeks, which could provide strong support for Bitcoin's price volatility. Moreover, some market analysts believe that Bitcoin could remain in a consolidation phase throughout April and May.

As the market absorbs recent gains, price fluctuations may become less violent. Although Bitcoin price briefly dropped below $82,000 in March, buyers quickly pushed Bitcoin up to the $81,500 support level. If this trend continues, Bitcoin price could sustain above $84,000 and continue to move higher.

However, due to the low number of sellers in the market, investors are keeping a close eye on the resistance level. The immediate target is $85,000, a price point that has been tested several times recently. A break above this level could set the stage for a rise to $88,000 or higher.

On the downside, the main support level is $81,500, and if selling pressure rises again, there is a possibility of a retest of $78,000. Top trader Peter Brandt did not rule out the possibility that Bitcoin could test the $70,000 floor again if the key support level fails to hold.

As the market gradually enters its latest recovery phase, the $86,000 resistance level and the $78,000 support level are worth paying attention to.

Institutional Demand and Binance Influence

It is worth mentioning that corporate investors are important in determining the direction of Bitcoin prices.

Unlike retail traders, institutional investors have a longer investment cycle, which generally reduces market volatility. With the support of this institutional investor, Japanese investment company Metaplanet Inc. acquired an additional 696 BTC using cash-secured put options, bringing its total holdings to 4,046 BTC.

Some analysts currently believe that Bitcoin price movements and consolidation will be largely affected by macroeconomic events such as changes in Fed policy and inflation reports.

Another key factor influencing Bitcoin's trend is Binance's dominance in the spot trading market. Binance's trading volume is now eight times that of Coinbase.

In the past, when Binance's trading volume led, BTC's price rose. If this trend continues, Bitcoin may gain further upward momentum.