Bitcoin (BTC) Struggles to Reclaim Its Previous All-Time High (ATH) of Over $109,000

Bitcoin has struggled to reclaim its previous all-time high (ATH) of over $109,000, staying below the $90,000 mark for nearly two weeks.

Bitcoin (BTC) has struggled to reclaim its previous all-time high (ATH) of over $109,000, remaining below the $90,000 mark for nearly two weeks.

After reaching the ATH in January 2025, Bitcoin has faced more bearish pressure, leaving traders uncertain about whether the current bull market has ended or if a new rally could push Bitcoin to fresh highs.

One striking development has been a 35% drop in Bitcoin’s open interest. This metric, which tracks the total value of outstanding derivative contracts, has fallen from $57 billion to $37 billion since the ATH.

This steep decline indicates a reduction in speculative trading and hedging activity.

Analysts at Glassnode noted that this decrease in open interest mirrors broader trends of decreasing on-chain liquidity, signaling risk-off sentiment among investors.

The drop in open interest may also indicate that traders are unwinding cash-and-carry trades, where they previously profited from the price difference between the spot and futures markets. This suggests a weakening long-side bias, which could be contributing to downward pressure on Bitcoin’s price.

Additionally, Bitcoin ETFs have seen outflows, and CME futures closures have chipped away at the positive sentiment, leaving Bitcoin more vulnerable to short-term volatility.

Another key on-chain metric, the “Hot Supply,” has seen a significant decline from 5.9% to 2.8% of the circulating supply over the past three months. This metric tracks Bitcoin holdings that are one week old or less.

As less newly-acquired Bitcoin is being traded, it contributes to a reduction in the supply of liquid Bitcoin available in the market.

Exchange inflows have also dropped significantly, decreasing by 54% from 58,600 BTC per day to 26,900 BTC. This suggests weaker demand, as fewer coins are being moved to exchanges for trading.

Lower exchange inflows may decrease sell-side pressure, but the decrease in trading volume could indicate overall market stagnation.

Bitcoin is currently trading around $85,462, trying to maintain support above the $85,000 level.

Market commentators, including the well-known “Unknown Trader,” have pointed out that Bitcoin’s ability to close above the $85,000 level is crucial for maintaining upward momentum.

The trader also noted that Bitcoin has closed above its 200-day moving average, historically a bullish signal. If Bitcoin can hold above $85,000, a move toward resistance at $90,500-$92,441 may be possible. However, there is also the potential for a rejection at these levels and a retest of the $85,000 support.

On a more positive note, CryptoQuant analyst Woominkyu highlighted a potential accumulation phase among U.S. institutional investors.

He pointed out a bullish crossover of the 30-day EMA and the 100-day EMA of the Coinbase Premium Index, which has historically signaled price surges. This suggests that institutional investors may be increasing their Bitcoin holdings.

This could be providing support for the ongoing bull market rather than signaling its end.

Overall, while Bitcoin is facing some downward pressure from declining open interest and other on-chain metrics, there are still positive signals suggesting that institutional accumulation could drive the next phase of growth.

Traders should closely monitor Bitcoin’s ability to maintain support above key levels to assess whether the bullish momentum will continue or if further consolidation is in store.