After dipping below the $51,000 level last week, Bitcoin bounced back over the weekend, holding key support around the $49,000–$52,000 area. According to analysts, Bitcoin now needs to close the weekly candle above the 21-day exponential moving average (EMA) at $51,500 to maintain its bullish momentum in the near term.
Although open interest on CME Group’s Bitcoin futures contracts recently hit a record high of $6.8 billion, according to data from CoinGlass, popular trader Daan Crypto Trades notes that when denominated in BTC rather than USD, the open interest metric shows less overt market exuberance at current levels.
As short-term traders took profits late last week, Bitcoin spot buying returned over the weekend to push the price back towards the $53,000 resistance level. Analysts are now closely watching to see if Bitcoin can break out above this area or if it will continue ranging between the $49,000 support and $53,000 resistance markers.
“In terms of spot flows around $52K to $53K, notable spot selling into bounces, which is often the case with profit taking,” noted trader Skew about activity on Binance over the weekend. Additionally, you can also read about- Best Day Trading Indicators.
Fellow market analyst Matthew Hyland also highlighted the $49,000 level as the ultimate line in the sand that needs to be protected for the weekly close to maintain Bitcoin’s bullish market structure.
With the weekly candle close fast approaching, the 21-day EMA and holding the $49,000 support will be key levels for bulls to defend. A weekly close above $53,000 could signal the next leg up in Bitcoin’s long-term rally. For now, the market remains range-bound but continues to hold onto the majority of the gains made over the past several weeks.
