Bitcoin's price action is witnessing positive momentum following the Federal Reserve's decision to hold interest rates steady. According to new research from CryptoQuant, this rate pause could foster a bullish environment for Bitcoin, as historical patterns suggest BTC benefits from such macroeconomic conditions. The analysis highlights a divergence between Bitcoin's price developments and the declining open interest (OI) on Binance, indicating a potential setup for a short squeeze near the $106,000 mark. A consistent demand zone has formed above $104,000, showing resilience against selling pressure, while the decreasing OI indicates a clearing out in the derivatives market. The combination of stabilizing Fed policies and signs of reduced liquidity risk enhances the bullish case for Bitcoin, forecasting an increased likelihood of a short squeeze. Furthermore, CoinGlass reports a growing risk of liquidation, particularly as the price hovers around key levels, emphasizing that market dynamics favor potential upside movement for BTC in response to these macro signals.

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