Bitcoin (BTC) is at a crucial stage as it climbs past $66,000, a level not seen since August 2. While some crypto traders are optimistic about further gains, others caution that a retracement to $60,000 could still occur. On September 26, Bitcoin broke through the $65,000 mark, sparking speculation about the cryptocurrency’s next move.

A Daily Close Above $65,000 Crucial for Bulls

Analysts from Kraken noted that Bitcoin’s recent price action has been relatively tight, with a series of small-range doji candlesticks on the daily chart reflecting market indecision. They highlighted that a daily close above $65,000 could confirm bullish momentum and open the path to higher levels. However, if BTC fails to break decisively above this level, a retracement to $60,000 remains a key risk.

Open interest (OI) in Bitcoin also saw an uptick of around 3.5% since September 20, reaching $35.61 billion, according to CoinGlass data.

Bitcoin ETF Interest Increases as Price Climbs

As Bitcoin approaches key levels, the interest in Bitcoin exchange-traded funds (ETFs) has surged. On September 26, total aggregate inflows for U.S. spot Bitcoin ETFs hit $365.7 million, marking the largest inflows since July 22. This also marked the sixth consecutive trading day of institutional inflows.

Crypto trader Rekt Capital pointed out that Bitcoin is “on the cusp” of entering the next phase of the market cycle, which could lead to parabolic upside momentum. Despite this optimism, traders remain cautious as Bitcoin hovers around critical price levels.