Bitcoin Gold prices rose to over $90,000 during the European afternoon session on Monday, up from $88,000 during the Asian session, but as the U.S. market passed the baton, reasons for caution remained.
In recent weeks, Bitcoin has tended to find early support during the Asian and European sessions, only to fade once U.S. investors returned to the market.
This dynamic makes U.S. stocks a key test of whether the rebound can be sustained. Prices that have previously broken through major levels, including $90,000, tend to reverse during the New York trading session as hedging trades increase and profits are realized – often resulting in the liquidation of hundreds of millions of dollars in see-saw trades.
Derivatives positions indicate that risk increases as prices rise. Bitcoin futures open interest rose steadily as BTC moved higher on Monday, climbing to $60 billion on major trading venues, according to CoinGlass data.
Binance, CME, and Bybit all saw significant growth, indicating new leverage entering the market and not just short covering.
In recent weeks, prices have strengthened outside of U.S. trading hours, followed by intensifying selling as U.S. traders come online, a dynamic that has become commonplace.
The concern now is not the breakout itself, but whether the rebound will be supported by spot demand or become increasingly reliant on leveraged futures.
Open interest rising with price doesn’t automatically indicate trouble, but it does increase risk. If this move continues, leverage could amplify the upside. If momentum stalls, crowded positioning can leave the market vulnerable to a quick correction as long positions are unwound.
The risk for bulls is that a failure to hold $90,000 during the U.S. session could reinforce the market’s pattern of lower recent highs and a rapid correction.
In contrast, a sustained break above this level would mark a breakout of the opening selling action that characterized much of December.
