Bitcoin Closes Bullish Week Amid Rising Leverage Risks
Bitcoin (BTC) closed its weekly candle on a bullish note, pushing toward the $87,000 mark once again. The weekend saw relatively low trading volume, but bulls maintained momentum through low-volatility sideways movement. The weekly close reinforced the medium-term bullish structure, but it also highlighted a growing risk: rapidly increasing leverage. BTC funding rates have risen significantly, indicating active contract bulls. While strong spot buying could fuel a breakout, a disconnect between contract funding and spot demand could lead to a quick deleveraging pullback.
The outlook for Ethereum (ETH) is more complex. Retail traders are heavily biased toward long positions, while top traders remain cautious. This setup suggests a generally bullish market but also raises the risk of a downside liquidation sweep. ETH has lagged behind BTC recently, with the ETH/BTC rate weakening. However, if BTC stabilizes and the ETH/BTC rate rebounds, ETH could experience a rapid catch-up rally. The current technical setup shows extreme compression, with multiple moving averages tightly converged, suggesting a potential for a fast breakout once volatility increases.
For BTC, the key resistance zone to watch is $87,500, $87,800. A breakout in this area with strong volume could signal further upside, potentially targeting $88,500, $89,000. Support levels to consider are $86,000, $86,500 and $84,800, $85,300. For ETH, the focus should be on buying dips and avoiding chasing rallies. A breakout above $2,800 could indicate a catch-up move, with support levels at $2,703, $2,670, $2,680, and $2,655.
The overall trend remains bullish, but caution is advised. Chasing high prices is risky; buying on pullbacks and following real breakouts with strong volume are preferred strategies. Professional analysts continue to track the market live, providing real-world technical analysis and risk management insights.