• Immediately after the FED cut interest rates by 50 basis points for the first time in four years, signaling a shift in monetary policy from tightening to easing, the liquidity wall of tens of billions of USD in the 70,000$-72,000$ range was partially dismantled. This suggests that large investors have adjusted their strategies, beginning to exit short positions.

  • The thick liquidity wall at the 70,000$ - 72,000$ range could be large sell orders (short positions) or stop orders from major investors. When the FED started to cut interest rates, these sell orders or hedge positions may have been removed to reduce risks, as they anticipate Bitcoin’s price to rise further.

  • When the FED cuts interest rates, lower rates reduce borrowing costs, encouraging investment in risk assets like crypto. The reduction in short positions from large investors in the liquidity wall around the 70,000$ - 72,000$ range can be interpreted as a sign that they are predicting a bullish trend due to a more favorable monetary environment and the easing policies from the FED.

  • This could be a signal that a significant price surge might be imminent as ample liquidity combines with the FED's monetary easing policies. The 70,000$ - 72,000$ range could remain a key resistance zone in the short term, but once the price breaks through this area, it is highly likely that we could witness $BTC reaching six figures before the end of 2024. There are virtually no resistance levels beyond this, except for the psychological barrier at 100,000$.

#short_position #FOMC_Decision #Bitcoin100K