💥 Bitcoin Clings to $104K Support — Fed Fallout or Fuel for a Rally?
The Fed left interest rates constant for the fourth straight day yesterday, damping prospects for a major surge in risk-on assets like Bitcoin (BTC). On-chain signs imply BTC is seeing robust demand, which might lead to its next move upward.
Strong Bitcoin Demand Despite Steady Interest Rates
Amr Taha's CryptoQuant Quicktake report found a strong demand zone for Bitcoin around $100,000. A rise in BTC may be imminent, according to the expert.
The Binance $BTC Price and Open Interest Change chart shows how this price region has consistently absorbed tremendous selling pressure, resulting in persistent equal lows over $104,000.
Binance open interest has fallen, signaling futures market deleveraging. Deleveraging may minimize risk and support sustained price rise.
Past $104,000 has been a “liquidation magnet” for late long holdings. The BTC: Binance Liquidation Delta chart reveals a strong concentration of liquidations around this price.
The chart shows green delta spikes from forced long position closures, indicating a cleaning of late rally traders. Few short liquidations show long squeezes controlled the market.
A long squeeze happens when an asset's price declines significantly, pushing long-term traders to sell or liquidate. Selling pressure lowers prices more, typically exacerbating the decrease.
Interestingly, this market cleansing corresponds with the Fed's interest rate rise halt. Risk-on assets like BTC usually benefit from such developments.
BTC has historically been strong after rate stability, particularly as liquidation fatigue and open interest fade.
#BTC Uptrend Resuming?
Multiple on-chain signs imply the BTC slump may be over. CryptoGoos has saw short-term BTC sellers losing momentum.
Without retail excitement, the market may be in an early or mid-stage rise. BTC has more growth potential, according to the Puell Multiple.
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