Bitcoin has once again captured the attention of traders as it soared past the $98,000 mark on Thursday, sparking intense debate within the community. The burning question on everyone’s mind is whether the cryptocurrency is on the verge of reaching the elusive $100K milestone or if the current rally is setting the stage for a potential sharp correction. Behind the scenes, market observers are closely monitoring the surge in open interest (OI) and the increased leverage in the market, raising concerns about a leverage-driven push propelling Bitcoin’s price higher.
CryptoQuant community analyst Maartunn (@JA_Maartun) sounded the alarm on a potential “leverage driven pump,” pointing to a staggering $2.4 billion increase in Bitcoin’s OI within a 24-hour period. This surge in open interest suggests that traders are increasingly using leverage to bet on Bitcoin’s price movement, raising the possibility of a rapid upward push driven by leveraged positions.
Backing up these observations, prominent crypto commentator Byzantine General (@ByzGeneral) highlighted the role of fresh long positions in driving prices higher, noting the influx of new long positions as a key factor behind the current rally. However, analysts from alpha dojo (@alphadojo_net) cautioned against excessive optimism, noting a significant gap between futures-based open interest and spot-driven purchases. They warned that without fresh catalysts or positive news, Bitcoin may struggle to sustainably pump above the $100,000 mark in the absence of significant spot buying.
Renowned crypto analyst Bob Loukas provided a cyclical framework for interpreting Bitcoin’s price movements, suggesting that the market may be on the cusp of transitioning from one multi-week cycle to another. While some traders fear that this transition could signal an imminent market top, Loukas clarified that it could instead mark the beginning of a new uptrend, emphasizing that cycles always begin from the lows.
Technical analyst Rekt Capital underscored the importance of Bitcoin’s daily close above the $97,700 threshold, indicating that a successful retest of this level could pave the way for a move beyond $100,000. He also highlighted Bitcoin’s relative strength index (RSI) channel, suggesting that a break above a series of lower highs could signal the next leg up for the cryptocurrency.
Looking ahead, a clear retest of $97,700 as support could confirm Rekt Capital’s bullish outlook, positioning Bitcoin for a potential rally towards the $101,000 resistance level. At the time of writing, Bitcoin was trading at $98,645, with the market eagerly anticipating the next moves in this ongoing price rally.