On Wednesday, bitcoin (BTC) briefly exceeded $100,000 for the fourth time, with trader sentiment switching from fear to greed as the price fluctuates between $90,000 and the six-figure level.
The largest cryptocurrency may take several attempts to push through the $100,000 barrier, as previous CoinDesk research suggests.
Since reaching an all-time high of around $108,000 on December 17, bitcoin has exhibited a series of lower highs, mirroring its seven-month consolidation phase earlier in 2024.
Nevertheless, the $90,000 price level remains robust. It has served as critical support, with bitcoin remaining above this threshold since November 18, save for a brief dip on January 13. Market participants are keenly watching for a potential shift that could emerge around President-elect Donald Trump’s inauguration on January 20.
It is also essential to monitor leverage in the market to gauge overall trader sentiment. This is reflected in futures open interest (OI), which represents the total number of outstanding bitcoin futures contracts.
Recent data from Coinglass indicates that OI has dropped to its lowest level since early November, shortly after Donald Trump’s election victory. Currently, open interest sits at 621,000 BTC ($61.6 billion), down from 700,000 BTC on December 19. This decline suggests that the latest price movements are less driven by leverage and more by spot trading.
For a comprehensive analysis, it is crucial to compare open interest measured in bitcoins rather than in nominal value, which can fluctuate with the bitcoin price.
