Bitcoin's Volatile Dance: Bulls Battle Bears Below $90K

Bitcoin temporarily dipped below the $90,000 mark, sparking a wave of uncertainty and volatility in the cryptocurrency market. After briefly hovering above the $90,000 and $85,000 levels, Bitcoin lost both, leading to a sharp decline. Bulls stepped in to push Bitcoin back up to $95,000 following President Trump's announcement of a U.S. Strategic Crypto Reserve. However, despite this temporary rally, Bitcoin remains trapped in a volatile trading range, leaving traders uncertain about its next move.

Adding to the uncertainty, data from CryptoQuant reveals that Bitcoin's Open Interest (OI) has dropped by 22% in the past 10 days, falling from 327K BTC to 255K BTC. This significant decline suggests that a large number of positions have been closed, either due to liquidations or voluntary exits. A sharp drop in OI often indicates a shift in market sentiment, with traders either reducing risk exposure or waiting for clearer market direction before re-entering.

Bitcoin is currently trading below the $90,000 mark, but market sentiment is shifting as many analysts now call for a potential trend reversal following recent price action. After a period of extreme volatility, bulls are attempting to push BTC back above $90K, a crucial psychological and technical level. A break above this zone could set the stage for a move toward $100,000 and new all-time highs (ATHs). However, despite the growing optimism, BTC remains at risk if it fails to hold key support levels. If Bitcoin drops below $80,000, it could trigger another wave of selling pressure, further delaying a full recovery. Bulls must defend current demand zones and reclaim $90K soon to avoid a deeper correction.