Bitcoin (BTC) 
$78,394 briefly crossed the $100,000 mark on Wednesday, shifting investor sentiment from fear to greed. The price continues to fluctuate between $90,000 and $100,000, creating a dynamic trading environment.
Bitcoin Price Analysis: Crossing the $100,000 Threshold May Take Time
Currently, Bitcoin shows a pattern of lower highs since reaching a record high of $108,000 on December 17. The $90,000 level stands out as a strong support point. It has only dipped below this mark once since November 18, 2024, specifically on January 13.
Markets are perceiving Donald Trump‘s inauguration on January 20 as a potential turning point. The new president’s policies could drive significant price movements in either direction.
Leverage Decreases, Market Shifts Towards Spot Trades
Monitoring leverage ratios is crucial for understanding market sentiment. Leverage usage is measured through open positions in futures. According to Coinglass data, open positions have dropped to November 2024’s low levels, indicating that price movements are now less leverage-focused and more reliant on spot trading.
Open positions decreased from 700,000 BTC on December 19, 2024, to 621,000 BTC (worth $61.6 billion). Analyzing open positions in Bitcoin provides a more accurate perspective. Given Bitcoin’s price fluctuations, considering the unit amount is more pragmatic than focusing on nominal value.
Experts suggest that Bitcoin may need several attempts to rise above $100,000 again. Investors are proceeding cautiously at these critical levels. The sentiment in the cryptocurrency market continues to navigate current economic and political developments.
