Bitcoin analyst warns of $105K 'danger zone' as open interest stays frothy
Main Idea
Bitcoin's short-term outlook is cautious, with analysts warning of a potential 'danger zone' around $105,000 due to elevated open interest and market risks.
Key Points
1. Bitcoin onchain metrics indicate a hidden risk zone around $105,000, with potential resistance at $117,000 and minimal support at $113,000.
2. Elevated open interest (OI) at $79 billion suggests speculative activity, making the market vulnerable to sudden volatility.
3. The Fear & Greed Index recently reset to Neutral, but high OI and historical patterns suggest potential for local tops and corrections.
4. Futures market bearishness peaked at -7.5% on July 29, with structural risks of liquidations amplifying downside momentum.
5. Analysts highlight the precarious market structure, with BTC correcting from its $123,000 all-time high.
Description
The short-term outlook for Bitcoin remains cautious, with a possibility of a trip toward $105,000, which one analyst calls the "hidden danger zone" for BTC price.
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