Bitcoin Bulls Aim for $100,000, Yet Caution Should Reign: Here’s the Reason
BTC climbs beyond $90K, setting sights on $100K, but excessive leverage and diminished spot volume pose risks. Can BTCUSDT bulls overcome price ceiling?
With Bitcoin consistently trading above $90,000, bullish sentiment is resurfacing in the crypto market discussions. Traders are not only confident that BTC/USDT will withstand any dips below $90,000 but are also optimistic that the crypto token will effortlessly leap above $100,000, a significant psychological point.
(BTCUSDT)
This optimism is partly fueled by favorable macroeconomic factors, rising institutional interest, observing spot BTC ETF inflows, and a stable holder community.
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Why Should BTC Traders Exercise Caution?
Nonetheless, despite the prevailing optimism, several critical signs are raising alarms, complicating matters for the bulls.
In a post on X, an analyst remarked that while the BTC/USDT price movements may seem healthy, underlying indicators are pointing towards increasing instability at the current price points.
Yesterday recorded the highest volume of leveraged positions in Bitcoin’s history for a single day, totaling $8.41B USD.
Today, $2.4B USD were liquidated—likely due to Market Makers closing long positions, triggering bear stops, and liquidations.
This signifies aggressive long positions,… pic.twitter.com/325BMmEpBD
— Joao Wedson (@joao_wedson) April 24, 2025
The analyst cautioned that disregarding these indicators could lead to significant issues for overleveraged traders on major exchanges like Binance, OKX, and Bybit.
They pointed out that on April 23, the Bitcoin market witnessed its highest-ever leveraged position volume.
Over $8.4 billion in open interest was recorded in a single day, marking a milestone that indicates both aggression and confidence from speculative long traders.
However, just 24 hours of volatile price action on April 24 led to the market and exchanges forcefully liquidating $2.4 billion in leveraged positions. This incited speculation regarding possible market maker exits, stop-loss adjustments, and long liquidations, including some of the best cryptos to invest in.
The scenario is worsened by the notably low spot volume despite soaring leveraged bets. This disparity indicates that the Bitcoin bullish may not be as strong as many believe. Consequently, the crypto market remains fragile and vulnerable to significant price fluctuations if trading market makers unwind their positions.
This discrepancy between an overextended futures market and a sparse spot trading market serves as a classic risk indication that could thwart bulls’ aspirations and potentially drive prices below $90,000. This could, in turn, divert capital away from some of the most promising presales in 2025.
Adding to the concerns, another analyst noted that the Coinbase Premium, utilized to assess institutional buying impetus in the U.S., is on the decline. This indicates a growing caution among institutional investors.
Speculators Taking Profits, BTCUSDT Barrier level at $96,000
Further analysis shows that short-term holders, or those who purchased BTC within the last 150 days, are cashing out after a drop to $74,500. The recent recovery from the highs of 2021 presents them with an opportunity to secure profits while waiting for clearer crypto market signals.
Short-term holders, who have faced losses over the last three months, are now actively divesting their coins, which has interrupted the growth.
In the past three days, exchanges have completely absorbed this sell-off.
Keep an eye on the $96K mark -this represents the average entry price… pic.twitter.com/drp0ZdSwiT
— Axel
In the near term, the analyst indicated that the $96,000 point, which represents the average entry price for short-term holders, is a critical barrier level point. It may act as a temporary barrier to aggressive buying.
Once surpassed, BTC could potentially surge and breach $100,000 decisively. Trends from Binance lend credence to this optimistic scenario. HODLers are choosing to hodl onto their BTC rather than sell.
On-chain data suggests that the quantity of Bitcoin addresses depositing to Binance and other exchanges is decreasing, reaching numbers not seen since December 2016.
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BTC Price Aims for $100,000: Why BTCUSDT Bulls Should Remain Wary
- Bitcoin remains above $90,000; will the rally continue?
- The futures trading market is overwhelmed with speculators while the actual market is lacking
- Over $2.4 billion were liquidated on April 23. The BTCUSDT crypto market shows signs of fragility
- Short-term holders are selling, yet $96,000 stands out as significant barrier level
The post Bitcoin Bulls Target $100,000, But Caution Must Prevail: Here’s Why appeared first on 99Bitcoins.
