Bitcoin ‘tests patience’ below $110,000 as options open interest climbs: analysts

Bitcoin is currently testing investor patience while trading below the $110,000 level, according to analysts at BRN. This price action is occurring as aggregated open interest for Bitcoin options has reached new records, leading to concentrated put exposure for dealers. This dynamic can cause wider intraday ranges and susceptibility to sudden price swings due to aggressive hedging.

Key price levels are critical: failure to reclaim $113,000 leaves weaker hands selling, and losing the $108,000 band risks a drop toward $104,500 or $97,000. Investor sentiment remains mixed, evidenced by recent net outflows from spot Bitcoin ETFs. Furthermore, macro factors like the U.S. government shutdown and anticipation of the CPI release are influencing market direction.

Analysts suggest Bitcoin is in a "proof-of-conviction phase," rangebound between ETF buying and long-term holder profit-taking, making rallies fragile. Some, like Standard Chartered, even predict an inevitable dip below $100,000 by the weekend, though potentially short-lived.

(Source：The Block)