$BTC

Bitcoin Price Hits $100K But Why Are Traders Cautious?

Bitcoin price hits $100K, sparking excitement, but traders remain cautious. Explore Why this is the case What's next for BTC in January 2025?

Bitcoin price hits $100K, but traders remain cautious.

Recent open interest spike threatens Bitcoin's price rally.

The US dollar index's potential correction adds to traders' cautiousness.

Bitcoin (BTC) price hit $100K on Monday, bringing the excitement back to the crypto market after 11 days of sideways movement. However, the optimism is not echoed by traders, who are showing signs of cautiousness.

Bitcoin Price Analysis

Bitcoin price shot up 3.91% on Monday, moving from $98,340 to $102,185. This uptrend caused altcoins and the broader crypto markets to shoot up as well. Despite the bullish development of crossing the $100K psychological level, some traders and investors remain cautious and expect a reversal or market correction.

As shown in the Bitcoin chart below, the recent uptick has pushed BTC to face rejection at the 161.8% Fibonacci retracement level of $102,306. This common area of reversal adds credence to what traders are already insinuating