Bitcoin analyst warns of $105K 'danger zone' as open interest stays frothy

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.