Bitcoin Could Be Poised for Bullish Breakout, CryptoQuant Predicted

Bitcoin may be gearing up for a renewed bullish run following the latest Federal Reserve meeting, according to a fresh analysis by CryptoQuant.

Referring to past trends, analyst Amr Taha recalled that Bitcoins tend to perform well following interest rates stabilization.

The report cites two other signals that point to the bullish sentiment slowdown in liquidation conditions and reduced open interest rates in large liquidity exchanges such as Binance. The two are viewed as indicators of slowing down speculative action and decreased volatility.

Bitcoin Forms Higher Lows, Signals Confidence

Based on the data of CryptoQuant, the bitcoin is in the process of establishing higher lows as long as it does not fall below the price of 104,000, indicating that buyers are gaining more confidence at higher levels.

Binance open interest has been drying up as well and this, again, is an indication that less aggressive trading is being done with leverage. This transition reduces the possibility of liquidity shock experienced due to mass liquidations in the market.

Liquidation information also confirms the possibility of rising growth. Recent forced selling washed out too many over-leveraged positions but it is a cleansing process and generally stabilizes the market and opens the path to recovery.

The data on the chart supplied by CryptoQuant indicates that there is a lot of liquidity prone to swings around the $104,000 mark, which has become a support level. Bitcoin is being consolidated a little above this area as market heatmaps indicate more trading strength in terms of traders wanting to hold positions.

And with interest rates stable, the speculative demands subsiding, and the liquidation incidents reducing, Bitcoin analysts ruminate that it is time to take-off and resume a significant upward trend barring the underlying market forces.