Bitcoin Tests $100K for Fourth Time as Market Sentiment Shifts
On Wednesday, Bitcoin (BTC) briefly surpassed the $100,000 mark for the fourth time, signaling a shift in trader sentiment from fear to greed as it oscillates between the $90,000 and six-figure price levels.
Bitcoin’s struggle to push through the $100,000 barrier is not new. Previous CoinDesk research has shown that it may take several attempts before the cryptocurrency can sustain a breakout above this key price level.
Since reaching an all-time high of approximately $108,000 on December 17, Bitcoin has experienced a series of lower highs, similar to the pattern seen during 2024’s seven-month consolidation phase. Despite this, the $90,000 price level has proven to be a strong support point, with Bitcoin remaining above it since November 18, except for a brief dip below it on January 13. The upcoming inauguration of President-elect Donald Trump on January 20 could be the catalyst for a significant move in either direction.
Another key factor in monitoring Bitcoin’s price action is tracking leverage, which can help gauge market sentiment. One way to measure this is through futures open interest (OI).
Open interest represents the total number of outstanding Bitcoin futures contracts. Coinglass data reveals that open interest has dropped to its lowest level since early November, when Trump won the U.S. election. Specifically, open interest has fallen from 700,000 BTC on December 19 to 621,000 BTC ($61.6 billion). This decline suggests that the recent price movements have been more spot-driven rather than leverage-driven, indicating a more cautious market.
For a fair assessment, it’s essential to compare open interest denominated in Bitcoin, as this provides a more consistent measure unaffected by fluctuations in Bitcoin’s price, rather than nominal value, which can vary based on market conditions.
