Crypto Pullback Alert: Critical Levels for BTC

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Crypto Pullback Alert: Critical Levels for BTC

 

Current prices (16 May 2025):

• BTC: $104,100
  
• ETH: $2,610
  
• SOL: $180.50
  
• HYPE: $25.45
   
  

TLDR:

• Prices have seen a significant move higher and are due for a pullback/a period of consolidation.
  
• Tariff de-escalation has likely substantially decreased recession risk, and therefore, we can look to become more constructive with our positioning on pullbacks.
  
• We will look to begin accumulating Spot bags on meaningful pullbacks. We have outlined some of these zones of interest below.
  

 
BTC:

• BTC's Open Interest has moved back up to its highs in USD value, suggesting that more leverage has been on. However, Funding Rates have remained relatively neutral, meaning that there is no build-up of excessive Longs, but rather a mix of both Longs and Shorts.
  
• Some of this Open Interest will likely have to be unwound, but it's hard to say if it'll be Longs or Shorts that might be squeezed.
  

 
Technical analysis

• BTC broke well above the horizontal level of $98,900, which may now become new support, or at least the first significant support for price.
  
• Beneath $98,900, $93,000 to $95,700 should be a good zone of support, should the price fall back below $98,900.
  
• To the upside, the key levels are at $107,00 and then essentially the all-time high of $109,000.
  
• Price has begun to consolidate/stall slightly, with price now grinding into the primary uptrend line. If the price loses the uptrend and fails to recover quickly, we may see a revisit of the $93,000 to $95,700 range.
  
• The RSI is very overbought, and it's currently sitting on top of its moving average. For this metric to meaningfully reset, we'll need at a minimum a significant period of consolidation.