HYPE Surges 35% as Bitcoin Rises to $84k

Hyperliquid, commonly known as HYPE, has seen a notable rally over the past two weeks, with gains of 35% in the last ten days. This upward trend has been supported by Bitcoin's slow but steady rise from $78k to $84k during the same period. At the time of writing, HYPE had rebounded from the $12 support level and was heading towards the $18.5-$20 resistance zone.

Despite the recent gains, the overall market sentiment remains bearish. Technical indicators suggest a bullish outlook in the short term, but the 1-day chart still shows a bearish structure. A move beyond $21.25 would be necessary to shift this bearish structure to a bullish one. The $18.5-$21 region is expected to serve as a significant resistance zone for HYPE.

The On-Balance Volume (OBV) indicator has been climbing higher, but it has yet to surpass the support level from the first two months of 2025. The Relative Strength Index (RSI) is on the verge of climbing past the neutral 50 mark, signaling potential bullish momentum. However, the bearish trend could continue, taking the price down to $8.2 if the resistance at $21 is not broken.

The Fibonacci retracement levels reveal that the $20.74 level is the 50% retracement level, and the $22.2 level can also be seen as a resistance. The 1-month liquidation heatmap shows that HYPE has taken out a pocket of liquidity at $16.1-$16.4, which could potentially lead to a bearish reversal towards $13.7. However, the liquidity up to $18.3 could continue to pull the prices higher.

Overall, while there are good chances for a sustained move higher, bulls should be cautious of Bitcoin's price movements in the coming days. The market's reaction at the $21 resistance level will be crucial in determining the short-term trajectory of HYPE. Investors and swing traders may want to remain bearishly biased until a breakout beyond the $21 resistance zone is confirmed.