Yesterday, the United States Federal Reserve (Fed) held stable interest rates for the fourth consecutive time, attracting the hopes of a significant rally in risky assets like Bitcoin (BTC). However, chain indicators suggest that BTC is experiencing strong demand – potentially laying the basics of its next movement up.
Bitcoin sees high demand despite regular interest rates
According to a recent post of cryptocurrency quicktake by the contributor AMR Taha, Bitcoin has established a solid request zone in the $ 100,000 range. The analyst suggests that this could point out BTC’s preparation to another rally upwards.
The following graph – Title Binance BTC Price and change of interest open – illustrates how this price area has repeatedly absorbed high sales pressure, which has made it possible to form equal low coherent stockings just over $ 104,000.
On the other hand, an open interest on the Binance has formed a series of lower stockings, indicating progressive deleveraging on the derivative market. Delert to delertement generally reduces the excess risk and can help create a more stable base for sustainable prices growth.
In addition, the level of $ 104,000 acted as a “liquidation magnet” for late long positions. The BTC graph: Binance Liquidation Delta shows a high concentration of liquidations around this price level.
The peaks of the green delta in the graph represent the forced closure of long positions, suggesting a cleaning of the traders who joined the rally late. Minimum short liquidations confirm that the market was dominated by long compressions.
To explain, a long pressure occurs when the price of an asset decreases sharply, forcing the merchants occupying long positions for sale or to liquidate themselves. This sales pressure further lowers the price, often accelerating the decline.
Interestingly, the time of this cleaning of the market coincides with the Fed’s decision to suspend interest rate increases. Such development has generally worked as net positive for risky assets such as BTC. Taha concluded:
Historically, the BTC has shown bullish trends after stabilization of rates, in particular when associated with signs of liquidation and open discoloration.
BTC upward trend to resume soon?
Several chain indicators suggest that the current BTC withdrawal can approach its end. For example, recent analysis By crypto analyst, Cryptogoos points to short -term BTC sellers short of momentum.
In addition, the signs of retail euphoria remain absent, suggesting that the market can always be in a rally at the start or mid-term. The multiple of Puell too suggest This BTC has more room to grow.
That said, some signs of predigates remain. In particular, the BTC trading volumes through the main world exchanges have abandoned For multi -year stockings, which raises concerns that the bullish impulse can weaken. At the time of the press, BTC is traded at $ 104,274, up 0.3% in the last 24 hours.
Star image of Unsplash.com, cryptocurrency graphics and tradingView.com
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