Bitcoin Nears $100K as Institutional Support and Open Interest Surge

With the crypto market ready for a bullish comeback, the speculations of a Bitcoin rally is increasing in the market. As BTC price prepares for a bounce back, improving numbers in the derivatives market and the rising institutional support hint at a bounce back above $100,000.

Bitcoin ETFs Continue To Buy

Along with the intraday recovery, the Bitcoin ETF in the U.S. market registers a daily total net inflow of $66.38 million on February 5. Among the top ETFs, 9 maintained a net zero flow, while BlackRock, Wisdomtree, and Fidelity maintained a positive inflow.

BlackRock acquired $44.35 million worth of BTC, followed by Wisdomtree acquiring $11.38 million, and Fidelity by $10.65 million. This marks the second consecutive day of positive inflows in the U.S. spot Bitcoin ETFs.

Derivatives Market Signals a Potential Bull Rally

As the BTC price action and ETF data remain positive, the funding rates are maintaining a volatile path. The funding rate has increased to 0.0021% after a minor plunge to 0.0013%. This shift indicates growing bullish confidence despite short-term fluctuations.

However, the Bitcoin open interest is on the verge of reclaiming the $60 billion market cap with the recent 1.43% rise. A steady increase in open interest suggests rising participation from traders. Furthermore, the long-to-short ratio over the past 24 hours has equalized and is now favoring the bullish position. This shift signals increasing optimism among investors.

Hence, with the rising number of bulls in the market and the growing funding rate, the derivatives markets are speculating a bullish rally in the BTC prices. A breakout could fuel momentum, pushing BTC toward higher resistance levels.

Bitcoin Recovery Targets $100k Breakout Again

With an intraday recovery of 2.07%, Bitcoin is back at $98,611, which forms a bullish engulfing candle and undermines the 1.20% drop last night.

In the daily chart, Bitcoin maintains an uptrend with a lower price rejection to overcome the recent market crash. With the recovery run, BTC is aiming to surpass the 50-day EMA. Furthermore, the BTC price aims to challenge the center pivot level near the $100,000 psychological mark.

With the growing bullish influence and market demand, Bitcoin is likely to reach the overhead resistance trend line near the $106,000 mark. In case of a breakout rally, the pivot levels paint the price target at $111,000 and $120,000. On the flip side, the S1 pivot level at $91,000 remains a crucial level beneath the local support trend line.