Bitcoin Dominance
Bitcoin Dominance Soars Ahead of FOMC as Volatility Burst Looms, Says Analyst.
Bitcoin's dominance in the market is currently influenced by its price action ahead of the Federal Open Market Committee (FOMC) meeting. The cryptocurrency has seen a surge in bullish activity, with traders opening margin long positions around $94,400. This is accompanied by a $189 million increase in Bitcoin futures open interest and a 15% rise in trading volume, indicating sustained buying interest ¹ ².
Key Factors to Watch:
FOMC Meeting: The upcoming FOMC meeting is expected to impact Bitcoin's price volatility. Historically, Bitcoin's momentum tends to slow down before interest rate decisions, followed by a sharp increase in price volatility.
Support Levels: Bitcoin is currently holding above the $92,900 support level, which is crucial for its potential rebound toward $100,000.
Technical Indicators: The Average Directional Index (ADX) has surged above 25, signaling trend strength, but the -DI dominance shows sellers still control short-term momentum.
Market Sentiment: Analysts believe that Bitcoin's price could continue to recover, with some predicting a potential rally to $100,000 if the Federal Reserve's tone is dovish ³.
Analyst Insights:
Nick Purin, founder of The Coin Bureau, believes Bitcoin is well-positioned to reclaim the $100,000 mark, citing positive momentum from spot BTC ETFs and corporate treasuries building up BTC reserves.
Michaël van de Poppe, founder of MN Capital, expects Bitcoin to continue its upward trend, with the key factor being whether gold starts to correct after the FOMC meeting ³ ².
