Bitcoin’s trading channel has held firm for weeks, with a steady pattern of higher highs and higher lows. After finding support near the channel low — a point that lined up with the market’s point of control — the rally reached the $123,825 high-timeframe resistance zone.
Based on reports, that level is now the last major cap before prices move into untried territory. If the barrier is taken cleanly, the next target inside the channel sits near $131,000.
Momentum is being backed by rising open interest. As price climbed, the number of active positions has also grown, which traders read as a sign of broadening participation rather than a brief retail flare-up.
Reports have disclosed that Strategy’s Bitcoin holdings rose to $77.4 billion as BTC reclaimed the $120,000 mark, a move that market watchers say reflects stronger institutional interest.
Some analysts expect another $20 billion could arrive before year-end. That kind of demand is being called by some investors a structural bid that tightens available supply on exchanges.
Kendrick bases his view on three pillars: sustained ETF inflows, faster adoption across firms, and steady market sentiment despite broader macro worries.
Price structure and open interest are aligned in a way that many traders find convincing. Each rally so far has been followed by measured pullbacks, which some see as healthy consolidation rather than a breakdown. Still, the region above prior highs is thin on liquidity; moves there tend to be quick and wild.
A close watch on how the market behaves around $123,500 will be important. A decisive break with growing volume and rising open interest would likely accelerate the climb toward $131,000 and beyond. If the level holds as resistance, expect a sharper correction that could test lower support inside the channel.
Featured image from Gemini, chart from TradingView
