After a period of volatility marked by aggressive sell-offs, the cryptocurrency market is witnessing a resurgence in activity. Bitcoin recently surpassed $114,000, with Ethereum briefly breaching $4,100, prompting traders to re-enter the space with renewed confidence. This optimism is reflected in rising open interest and trading volumes, hinting at a potential shift toward bullish momentum. However, analysts caution that short-term gains may be exploited by intra-day traders amid ongoing volatility. The recent rally in Bitcoin and Ethereum signifies increased institutional and retail interest following the market dip. While technical indicators show signs of positive momentum, some analysts warn that these rallies might trigger selling pressure at intra-day peaks. Market action took a sharp turn on Tuesday, with Bitcoin peaking at around $114,000, while Ethereum briefly surged past $4,110. Solana also attempted a break above $200 before facing resistance. This surge aligns with rising open interest in Bitcoin futures, indicating traders’ return to the market following the substantial liquidation event on October 10th, which wiped out $20 billion in futures positions. Data from CoinGlass confirms this trend, with Bitcoin futures open interest climbing from a low of $28 billion to over $32 billion. Hyblock analysts capitalized on this momentum, illustrating how Bitcoin’s rally from $107,453 to $114,000 coincided with a rise in anchored open interest and a positive shift in cumulative volume delta—indicators suggesting that futures markets are fueling the current breakout. This market activity is reflected in a rising funding rate, further supporting the idea that institutional-driven futures activity is driving the upward movement. As Bitcoin stabilizes in its recent recovery zone, technical analysts note traders are likely focusing on areas of high liquidity, such as $114,000 to $115,000 levels. This process of absorbing liquidity at these price points suggests strategic positioning and potential resistance zones. A heatmap from Hyblock reveals this activity, showing the liquidity absorption at these levels which may influence future price movements. Despite renewed optimism, experts like Cointelegraph’s Rakesh Upadhyay caution that intra-day traders may continue to sell into rallies, closing profitable positions at peaks. Meanwhile, traders are expected to defend key support levels around $107,000, which remain crucial for maintaining longer-term bullish prospects.