Bitcoin Bulls Face Repeated Setbacks: Can They Break $100K?

Bitcoin's recent price action has been characterized by a series of short squeezes, with bulls repeatedly attempting to break through the $100,000 (BTC) barrier. The Open Interest (OI) Heatmap has shown a clear pattern of buyers stepping in, OI spiking, and then prices reversing, leaving longs stuck. The $99K - $100K zone has seen a surge in OI, forming a local top before BTC dropped. With longs repeatedly getting caught, how can bulls strategize to break BTC out of its slump?

Over the past month, Bitcoin has been trading in a tight range, with the price oscillating between $95,000 and $106,000. At the 105K-106K range, OI surged as traders piled in, with over $68 billion in open positions – marking the largest accumulation of OI. However, when BTC revisited this "breakeven" zone, longs doubled down – only to get trapped as weak hands exited the cycle after locking in gains and wiping out millions in long liquidations. On top of that, futures traders ramp up high-risk leverage as BTC hits a top, with the leverage ratio spiking – further trapping longs and triggering more liquidations. This flipped the price range into a tough resistance zone.

Recently, the 95K-98K range saw a massive surge in OI, surpassing $60 billion. But this time, it acted as support, trapping shorts as BTC broke past $98K. Now, as Bitcoin hovers in this range, the big question is whether the pattern will repeat. Could a short squeeze push BTC past $99K, targeting $100K, before the futures market overheats with overleverage? With 52% of positions short and OI up by 1.50%, the market sets the stage for a powerful squeeze, trapping shorts and flipping the $99K-$100K range into a local bottom. However, a drop in OI could be bullish, allowing Bitcoin to break past key resistance levels. If not, the cycle of trapping longs at every top could keep BTC stuck in a loop. The next few days will be critical in determining Bitcoin's next move.