- Bitcoin is still above $104K, maintaining higher lows.
- Deteriorating open interest and liquidation are all signs of a lower market risk.
- The analysts think that a rally in the Bitcoin market can be achieved provided the prevailing trends remain unchanged.
A new analysis by CryptoQuant indicated that Bitcoin might be preparing to experience another bullish run after the latest meeting of the Federal Reserve. Historically, Bitcoin has tended to do well following a period of interest rate stabilisation, said analyst Amr Taha.
The analysis added that this favorable trend goes even further when two other indicators exist, namely, the deceleration of liquidation events and the decline of open interest levels on large exchanges such as Binance.
Cryptoquant Data Supports an Upward Trend of Bitcoin Price
According to the statistics of CryptoQuant, Bitcoin is already in the process of building a pattern of higher lows provided the price does not fall below $104,000. This is usually viewed as a sign of bullishness whereby buyers are entering the market at higher and higher prices.
Source: CryptoQuant
Following this pattern is the open interest on Binance, which is beginning to decline. The fall of open interest tends to indicate a leveling out of the raging activity of speculative trading. This consequently minimizes the risk of sudden price swings due to mass liquidations.
Post-Liquidation Stability Suggests Rally May Be Approaching
Another point demonstrating possible upcoming Bitcoin rallies is liquidation data. A big liquidation was registered, and a significant decline followed. Such a drop means that most of the overly-leveraged participants have been “washed away” in the market.
Source: CryptoQuant
When many traders using borrowed money are forced to exit their positions, it can temporarily cause prices to fall sharply. However, in many cases, BTC easily stabilizes after the period of forced selling, and it may start to increase once again.
Bitcoin May Be Poised for Rally if Support Levels Hold Firm
Supporting this outlook, charts shared in the CryptoQuant post show a cluster of liquidation activity around the $104K zone, a level that is now acting as a strong support. Market heatmaps from trading platforms also show BTC price consolidating just above this level, hinting that traders are increasingly confident in holding their positions.
Source: CryptoQuant
The combination of stabilizing interest rates, fading speculative activity, and reduced liquidation pressure sets a potentially bullish stage for BTC. Analysts at CryptoQuant suggest that if these patterns continue, Bitcoin could be primed for a strong move upward.
Also Read: Bitcoin Forms Bullish Pattern With $150,000 Breakout Potential Ahead
