Bitcoin’s next major move post-FOMC relies on staying above $115,200
Bitcoin (BTC) stays in a fragile stability following the Federal Reserve’s price reduce choice, the place holding $115,200 is vital to defining the next motion.
Glassnode reported on Sept. 18 that derivatives markets and on-chain information revealed a market poised for its next directional move.
BTC was buying and selling at $117,649.40 as of press time, positioning above the associated fee foundation of 95% of Bitcoin provide at $115.2k.
This threshold represents a crucial line for sustaining demand-side momentum. Failure to carry this stage dangers a contraction towards the vary between $105,500 and $115,200, which might additional entrench promoting stress.
Derivatives markets sign fragile positioning
Perpetual futures markets have proven stabilization after a interval of volatile pre-FOMC positioning.
Open curiosity declined from a cycle high of 395,000 BTC on Sept. 13 to 378,000 BTC following uneven worth motion, however has since stabilized between 378,000 BTC and 384,000 BTC.
The pullback to $115,000 after the speed reduce triggered vital lengthy liquidations, pushing liquidation dominance to 62%.
Current positioning reveals a fragile market construction with long-side max ache at $112,700 and short-side max ache at $121,600.
This slender vary suggests Bitcoin sits precariously between potential liquidation cascades, the place draw back strikes threat triggering lengthy positions whereas upside breaks might gas brief squeezes.
Record choices exercise highlights volatility
Bitcoin choices open curiosity has reached a document 500,000 BTC, with Sept. 26 marking the most important expiry in Bitcoin’s historical past.
The contract’s strike distribution spans $95,000 places to $140,000 calls, with max ache close to $110,000 appearing as a possible gravitational pull till expiry.
Options positioning reveals constant put promoting under spot and intensified name shopping for above present ranges.
This construction forces sellers to offer liquidity in each instructions, doubtlessly cushioning declines whereas fueling rallies by way of hedging flows.
Market construction displays cautious optimism
The spot market cumulative quantity delta reveals gentle detrimental deviations throughout major exchanges, indicating cautious sentiment regardless of the optimism surrounding the speed reduce.
However, perpetual markets show a notable shift from excessive promoting to balanced circumstances. This motion displays returned liquidity as buy-side flows offset persistent August promote stress.
The convergence of document choices positioning, stabilized perpetual flows, and Bitcoin’s place above crucial price foundation ranges suggests a market awaiting affirmation of its next major move.
Bitcoin’s capability to remain above $115,200 will outline the next major post-FOMC motion
The submit Bitcoin’s next major move post-FOMC relies on staying above $115,200 appeared first on CryptoSlate.
