🚨 Bitcoin Clings to $104K Support — Fed Fallout or Fuel for the Next Rally?
Bitcoin ($BTC ) is holding tightly to its $104,000 support level following the Federal Reserve’s decision to pause interest rate hikes for the fourth consecutive meeting. While this move dims hopes for a major rally in risk-on assets, on-chain data suggests BTC demand remains strong, possibly setting the stage for an upward breakout.
According to a new CryptoQuant Quicktake by analyst Amr Taha, a high-demand zone has formed near the $100K–$104K region, acting as a buffer against downward pressure. Taha highlights consistent equal lows just above $104K, reflecting how buyers are absorbing sell-offs — a bullish signal in the face of macroeconomic uncertainty.
Adding to the positive outlook, Binance open interest has dropped, signaling that the futures market is undergoing deleveraging. This reduction in leverage tends to clean out excessive speculation, creating more stable conditions for a sustained price recovery.
The Binance Liquidation Delta chart backs this narrative, showing significant green spikes — liquidations of overleveraged long positions — around $104K. These “long squeezes” flush out weak hands and often mark reversal zones. Interestingly, there’s been a noticeable lack of short liquidations, which implies that the recent market dip was primarily driven by long position collapses, not widespread bearish sentiment.
Historically, Bitcoin tends to regain strength in the wake of Fed rate pauses, especially when combined with on-chain metrics showing declining sell pressure and fading open interest. Some analysts believe this reset could be the fuel for the next BTC rally.
Supporting this view, analyst CryptoGoos observed that short-term BTC sellers are losing momentum, and retail FOMO is still absent — both signs of a potentially healthy early-stage uptrend. In addition, the Puell Multiple, a key indicator of miner behavior and market cycles, suggests further growth potential for BTC.
