Bitcoin Trades Above $87,000 as Analysts Highlight Bullish Indicators

Bitcoin (BTC) has reached above $87,000 for the first time since April 1, with analysts suggesting a potential rally. Key indicators show positive momentum:

Exchange inflows have decreased significantly, dropping from 120,000 in November 2024 to around 9,300, indicating reduced sell pressure.
Open interest in BTC futures has increased by $6 billion over two weeks, reflecting heightened trader participation and confidence.
Positive funding rates suggest dominance of long positions among traders.

However, caution is advised as excessive leverage in the derivatives market could trigger price corrections.

Market Analysis

BTC has broken out of a falling wedge pattern, typically indicating a bullish reversal.
The Relative Strength Index (RSI) is nearing 60, which may indicate renewed buying strength but also poses the risk of a bull trap if unable to push higher.
The futures sentiment index has been declining since February 2025.

Currently, BTC trades at $87,386, up 3.4% in the last 24 hours.