Bitcoin Knocks on $100K Door Once Again
The world’s leading cryptocurrency is no stranger to flirting with the elusive six-figure mark. Wednesday’s brief foray above $100,000 marked the fourth time Bitcoin has reached this psychological milestone, only to retreat back into five-digit territory. But could this latest attempt be the one that finally sticks?
Bitcoin’s price action in recent months has been defined by a narrowing range between $90,000 and $100,000. Each time it has approached the upper bound of this channel, excitement builds about a potential breakout to new all-time highs. Yet so far, a sustained move above $100K has remained out of reach.
Trump Inauguration: The Catalyst for a Breakout?
Many analysts are eyeing the upcoming inauguration of President-elect Donald Trump on January 20th as a potential turning point for Bitcoin’s next major move. The controversial figure’s surprise victory in the 2024 election sent shockwaves through financial markets, with Bitcoin initially tumbling before mounting a rapid recovery to current levels.
Now, as Trump prepares to be sworn in as the 47th U.S. president, speculation is rampant about how his administration’s policies could impact the crypto landscape. Some see his anti-establishment rhetoric and criticism of the Federal Reserve as tailwinds for Bitcoin adoption, while others fear stricter regulations could be on the horizon.
“Uncertainty around the incoming administration is reaching a fever pitch, and that’s translating directly into the Bitcoin price action we’re seeing. All eyes will be on Trump’s first moves in office to get a sense of his stance on crypto.”
– Lyn Alden, Investment Strategist
Futures Open Interest Tells a Story
Amid the hype surrounding Bitcoin’s repeated $100K tests, a look under the hood reveals some interesting dynamics at play. Futures open interest, which measures the total number of outstanding derivative contracts, has steadily declined since hitting a peak in mid-December.
This suggests that recent price rallies have been driven more by spot buying in the underlying Bitcoin market rather than leveraged speculation via futures. When open interest is lower, there tends to be less risk of sudden liquidations triggering increased volatility.
Bitcoin Futures Open Interest
Open interest has dropped significantly from December peak
At the same time, volume on leading spot exchanges has remained robust, indicating consistent demand from buyers to scoop up Bitcoin around the psychological $100,000 level. If this organic interest can overpower futures-driven speculation, it bodes well for a more sustainable and gradual climb beyond $100K.
Critical Levels to Watch
As the Bitcoin market holds its breath for the next major move, all eyes are on a few key technical levels that could determine near-term direction:
- $100,000 – This psychologically significant level has now been tapped 4 times, forming a clear resistance zone. A high volume daily or weekly close above it would signal a strong breakout.
- $90,000 – On the support side, $90K has held strong in recent pullbacks, aside from one brief wick below it last week. A sustained loss of this level would jeopardize the bull case.
- $108,000 – Bitcoin’s current all-time high from mid-December looms large overhead. Reclaiming this marker would ignite momentum for a push towards uncharted territory.
Key Bitcoin Price Levels
- $100K – Key Resistance
- $90K – Must-Hold Support
- $108K – All-Time High
“Bitcoin is coiling up below $100,000 in a tightening consolidation range. The next confirmed breakout, up or down, will likely spark a significant move and set the tone for the coming months.”
– Rekt Capital, Crypto Analyst & Educator
The convergence of Trump’s inauguration and Bitcoin’s ongoing dance with $100K has created a powder keg environment where the next big market catalyst could light the fuse for an explosive movement. Whether that move is a euphoric surge above six-figures or a painful retracement to retest lower support remains to be seen.
One thing is for certain – the world will be watching with bated breath as Bitcoin navigates this crucial juncture and President Trump takes office. The resulting fallout could not only define Bitcoin’s trajectory in 2025, but spark a chain reaction across global financial markets. Buckle up – volatility is on the menu.
