Bitcoin News Today: Bitcoin Faces Critical Test at $105,000 Amid Rising Onchain Pressure and $79B Open Interest

Bitcoin’s price is currently facing heightened scrutiny around the $105,000 level, which several analysts have flagged as a potential area of volatility and risk. With Bitcoin trading near $112,000, the $105,000 level has emerged as a key area of interest due to onchain data showing significant accumulation and selling pressure [1]. Analysts describe this price point as a “hidden danger zone” for BTC, where a retest could trigger sharp price swings [1].

Onchain metrics highlight a convergence of activity at $105,000, with the UTXO Cost Basis Histogram revealing a notable wall at $105,644. Short-term holders also have a realized price hovering close to $105,350, reinforcing the importance of this level as a critical support [1]. These metrics suggest that a break below this threshold could lead to a cascade of liquidations and increased downward momentum.

The elevated open interest in Bitcoin futures trading further contributes to market fragility. According to Hyblock Capital, open interest remains at $79 billion, a level that has not yet fully reset following Bitcoin’s recent high of $123,000 [1]. This high level of speculative activity increases the likelihood of rapid price shifts, especially in the event of a correction or negative catalyst. The firm notes that historically, when open interest remains high and the Fear & Greed Index enters “Extreme Greed” territory, it is often followed by a market top and subsequent pullback. This pattern was recently observed on July 16, which preceded a sharp drop from $120,000 to $112,000.

Bitcoin researcher Axel Adler Jr. also highlights growing bearish sentiment in the futures market. On July 29, bearish pressure peaked at –7.5% following the price hitting an all-time high, and while it has since eased slightly to –5.2%, structural risks remain. Adler warns that a sudden negative event could trigger a wave of long liquidations, accelerating downside movement [1].

Given these conditions, investors are advised to closely monitor price action around $105,000. A retest of this level could serve as a catalyst for renewed volatility, and onchain metrics suggest that the market is positioned for a potential shift. High open interest and speculative positioning indicate that any sharp movement, whether upward or downward, could be amplified.

Bitcoin’s short-term outlook remains cautiously balanced, with analysts emphasizing the importance of watching both price and onchain indicators. The convergence of accumulation and selling pressure around $105,000, combined with fragile market structure due to elevated open interest, points to a period of elevated risk ahead [1].

Sources:

[1] Cautious Outlook for Bitcoin: Potential Risks Around $105,000 Amid Elevated Market Volatility. https://en.coinotag.com/cautious-outlook-for-bitcoin-potential-risks-around-105000-amid-elevated-market-volatility/