Bitcoin has broken above $88,000 and bullish sentiment is back in the crypto markets as several analysts are seeing early signs of a Bitcoin rally to $90,000. After weeks of sideways action, key technical and on-chain metrics are pointing to a change in market dynamics and investors are getting optimistic.
BTC Above $87K, Breaks Multi-Week Downtrend
Early Monday, Bitcoin broke out of the $83,000 to $86,000 range and went above $87,000 and is showing short term momentum. At press time, BTC stands at $88, 564. The breakout came after a week of consolidation and invalidated the downtrend that had been in place since the all time highs.
Rekt Capital, a well-known crypto analyst, pointed out that Bitcoin has broken out of a falling wedge on the daily chart, a classic bullish reversal pattern. “This kind of structure often precedes big price moves” Rekt said in an April 22 post on X.
Charts also show that BTC has gone above its 30 day EMA of price highs. The next target range according to chart analysts is $90,000 to $92,000, a zone that was support before February’s correction.
On-Chain Metrics Confirm the Setup
According to a CryptoQuant Quicktake by EgyHash, several on-chain metrics are flashing green. One of them is the decline in exchange inflows, a metric that measures the amount of BTC being sent to exchanges.
Since November 2024 when exchange inflows peaked at 120,000 BTC, the number has been declining. As of April 2025 it’s at 9,300 BTC. “This is a downtrend and implies less sell pressure as fewer people are sending their BTC to exchanges” EgyHash said.
Lower exchange inflows is a historical sign that investors are holding onto their assets rather than selling and that creates a supply squeeze during bull runs.
Open Interest and Positive Funding Rates Indicate Market Confidence
EgyHash also noted a $6 billion increase in Bitcoin’s open interest over the last two weeks. Open interest is the total value of all BTC futures contracts and is a measure of trader participation and sentiment. It’s been accompanied by positive funding rates — longs are in control and people are paying to hold their longs. This is what happens when people expect the price to go up.
But analysts warn that too much leverage can backfire. “While open interest is bullish, an over-levered market can lead to liquidations if momentum stops” EgyHash said.
RSI Signals Strength But Caution Remains
Bitcoin’s RSI is getting close to 60, a level that often means buying strength. If RSI breaks 60 with volume, $90,000 could happen fast.
But the momentum indicator isn’t without warning. “If RSI touches 60 and doesn’t go higher, it might be a weakening Bitcoin rally or even a bull trap” Rekt Capital warned. As a result, investors should be careful.
Meanwhile, Bitcoin’s futures sentiment index is showing fatigue. According to CryptoQuant, the index has been trending down since February. Some investors are still cautious about going long.
Market Eyes $90K–$92K Target Zone
The next big target is $90,000–$92,000, an area that was strong support from December 2023 to February 2024. After that support was broken in late February, BTC dropped to $73,500 in early April and then rebounded.
Analysts now see that zone as resistance. A retest and break could open the door to new all-time highs especially with institutional interest in Bitcoin growing.
Conclusion: A Bitcoin Rally Is Brewing But Traders Be Careful of Leverage
With multiple bullish signals, reduced exchange inflows, rising open interest, positive funding rates and key technical breakouts, Bitcoin rally is looking up to $90,000.
However, market participants need to be careful, over-leveraged conditions could still trigger a big correction. If momentum holds, Bitcoin might be setting up for the next leg up but. All eyes will be on how it performs around $90K–$92K in the coming days.
FAQs
What triggered Bitcoin’s breakout above $88,000?
Bitcoin broke out above $88,000 after breaking a falling wedge and moving above key moving averages.
Why is low exchange inflow bullish for Bitcoin?
Low exchange inflow means investors are not moving BTC to exchanges to sell, reducing sell pressure and indicating a supply squeeze.
What does rising open interest mean?
Open interest means more traders are participating and confident, often in the early stages of a bull run.
What’s the significance of $90K–$92K for Bitcoin?
This zone was support before the February crash and is now resistance. A break could propel Bitcoin higher.
Is Bitcoin Rally a bull trap?
If RSI doesn’t confirm strength or leverage gets too high, there will be a big correction.
Glossary
Exchange Inflows – BTC going into exchanges; means sell
Open Interest – total value of all futures contracts
Funding Rates – payments between long and short traders in perpetual futures; market sentiment
RSI (Relative Strength Index) – momentum indicator to identify overbought/oversold
Falling Wedge – bullish pattern to reverse downtrend to uptrend
References
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