Bitcoin price holds steady near $104,000 while Binance open interest declines, signaling reduced leverage across the derivatives trading landscape.
A sharp liquidation cluster near $104K wiped out late long positions, clearing speculative trades following the Federal Reserve’s rate pause.
Historical patterns suggest Bitcoin may rally as open interest fades and liquidation activity eases amid stable macroeconomic conditions.
Bitcoin price stability on Binance contrasts with falling open interest, raising questions after the Federal Reserve’s recent decision to hold rates steady.
Divergence Between Price and Open Interest
Following the Federal Reserve’s move to pause interest rate hikes, analysts noted a divergence on Binance between Bitcoin’s price behavior and open interest levels. According to a chart shared by Amr Taha via CryptoQuant.com, Bitcoin has been forming equal lows just above $104,000. This range appears to be a consistent demand zone, absorbing repeated sell-side pressure.
https://twitter.com/cryptoquant_com/status/1936013433876754931
However, Binance's open interest has recorded consecutive lower lows during the same period. This downtrend signals continuous deleveraging across the exchange’s derivatives segment. The pattern suggests a broader reduction in trader exposure, especially among long-position holders.
$104,000 Emerges as a Liquidation Magnet
The Binance Liquidation Delta chart shows a heavy cluster of liquidations around the $104,000 level. These liquidations largely came from long positions, with green delta spikes reflecting forced closures. This development indicates a cleanup phase where late-entry longs were pushed out of the market.
Short liquidations, in contrast, were minimal, pointing to an environment dominated by long squeezes. The timing of these liquidations suggests that the zone around $104,000 may act as a reset point for bullish structures, potentially removing excess leverage from the market.
Rate Stability Supports Bullish Recovery Potential
In a post shared by CryptoQuant.com, it was noted that Bitcoin often reacts positively following periods of rate stabilization. Historically, such macroeconomic conditions align with bullish market phases, especially when combined with signals of liquidation exhaustion and waning open interest.
These technical and macro signals, paired with the recent removal of speculative longs, position Bitcoin for a potentially healthier structure moving forward. Traders may interpret this combination as setting the stage for renewed upward momentum, should support hold above $104,000.
The market now watches closely to see if this convergence of reduced leverage and steady rates will translate into price strength for Bitcoin in the near term.
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