Bitcoin hovers below $110,000... "Testing patience"

Bitcoin (BTC) has failed to find direction below a short-term resistance line, testing investors' patience. Open interest (OI) in options remains at record highs, suggesting market volatility could increase.

According to The Block on the 23rd (local time), Bitcoin traded around $109,000 on the day, having fallen more than 3% over the past month. Timothy Mishir, head of BRN Research, said, "Bitcoin is repeatedly trading in a narrow range below the average purchase price of short-term holders," and added, "the market is currently at a stage of being tested for proof-of-conviction."

Open interest has hit an all-time high, and rising demand for put options raises the possibility of increased short-term volatility due to hedging trades. BRN said, "Dealers are crowded into put option positions, widening short-term price swings," and added, "this could produce abrupt rebounds or declines at key price levels."

Wall Street flows reflect the uncertain mood. The previous day, $101,000,000 flowed out of Bitcoin spot ETFs and $19,000,000 flowed out of Ethereum ETFs, suggesting institutional demand has cooled after recent market volatility.

Macro factors are also weighing. QCP Capital said that with a U.S. government shutdown halting most economic data releases, the consumer price index (CPI) scheduled for the 25th is likely to be the sole major data point to determine market direction. QCP said, "If the CPI shows a modest rise of around 0.2%, Bitcoin's upside momentum could strengthen, but a higher-than-expected print would accelerate risk-asset aversion."