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Bitcoin Demand Surges Amidst Stable Interest Rates
In a recent development, the US Federal Reserve has maintained its interest rates for the fourth consecutive time, impacting the momentum for risk-on assets like Bitcoin (BTC). Despite this, on-chain data reveals robust demand for BTC, indicating potential for future upward movement.
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Bitcoin’s Strong Demand in a Steady Rate Environment
According to a detailed analysis by CryptoQuant contributor Amr Taha, Bitcoin has carved out a substantial demand zone in the mid-$100,000 range. This zone may be a precursor to BTC’s next upward rally.
A chart – titled “Binance BTC Price and Open Interest Change” – showcases this price region consistently absorbing selling pressure. BTC has been forming equal lows just above $104,000, while open interest on Binance exhibits lower lows, suggesting a decrease in risk exposure within the derivatives market. This deleveraging can create a more solid ground for sustained price increases.
The $104,000 level has also become a focal point for liquidations of late long positions. The “BTC: Binance Liquidation Delta” chart highlights a concentration of liquidations at this level. Green delta spikes indicate the forced closure of long positions, clearing out traders who entered the rally late. The minimal short liquidations suggest a market dominated by long squeezes, where rapid price drops force traders to liquidate long positions, further driving prices down.
This market adjustment coincides with the Fed’s decision to pause rate hikes, historically a positive signal for assets like BTC. Taha notes that BTC has often exhibited bullish trends following rate stabilization, especially when paired with signs of liquidation exhaustion and declining open interest.
Potential Resumption of BTC’s Uptrend
Several on-chain indicators hint that BTC’s current pullback might be nearing its conclusion. For instance, recent insights by crypto analyst CryptoGoos suggest that short-term sellers of BTC are losing steam.
Additionally, the absence of retail euphoria suggests the market might still be in an early or mid-stage rally. The Puell Multiple also indicates potential for further BTC growth. However, it’s crucial to remain cautious as BTC trading volumes on major exchanges have dipped to multi-year lows, potentially signaling waning bullish momentum. As of the latest update, BTC is trading at $104,274, reflecting a 0.3% increase in the last 24 hours.
The current BTC price is $104,274 on the daily chart, with data sourced from BTCUSDT on TradingView.com
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