Early this morning, the Federal Reserve announced that the interest rate remains unchanged, which meets market expectations. What effect will this have on the upcoming bull market in the cryptocurrency space?
Although there was no rate cut in May, maintaining the interest rate is in line with market predictions, so the announcement this morning is a positive signal for the market itself.
Bitcoin has also broken through the $98,000 mark. Currently, since there was no rate cut in May, the likelihood of the Federal Reserve lowering rates in June and July will greatly increase, which is a conclusion drawn from the data released by the market.
The anticipated liquidation of Bitcoin has indeed occurred, directly liquidating all short positions at $98.3k. In one hour, $35 million in short positions were liquidated, almost wiping out a $41 million short position at $98.4k.
If this trend continues, it feels like the short position liquidation price could be pushed up to around $99.2k. The strongest short liquidity and sell orders are all in the range of $99.2k to $99.8k, which is also the best shorting zone.
Currently, Bitcoin's trading volume has expanded, but after a one-hour rebound above $98,000, it has formed a long upper shadow. There is significant divergence between bulls and bears at the upper resistance, and it won't break through quickly. Without positive drivers, and with no new liquidity, a phase transition cannot be achieved, so there will not be a continuation of the market trend, and it will remain in a wide range of fluctuations.
