Bitcoin Consolidates Near $105,000 as Fed Rate Pause Boosts Bullish Sentiment

CryptoQuant, an onchain analytics firm, has highlighted emerging tailwinds for Bitcoin (BTC) following the Federal Reserve’s decision to keep interest rates unchanged during its June 18 policy meeting. The unanimous vote to pause further hikes has historically benefited Bitcoin, and analysts believe that 2025 may offer favorable conditions for risk assets.

CryptoQuant contributor Amr Taha noted a divergence between BTC price and open interest (OI) on Binance. BTC has formed consistent equal lows slightly above $104,000, acting as a strong demand zone that repeatedly absorbs sell pressure. Meanwhile, open interest on Binance has been making lower lows, indicating a steady round of deleveraging in the derivatives market. This type of shakeout, where price holds while OI declines, is often seen as a signal that weaker positions are being cleared, potentially paving the way for more stable upward movement.

The timing of this cleanup coincides with the Fed’s decision to pause rate hikes, a macroeconomic signal that often acts as a tailwind for risk-on assets like Bitcoin. In past cycles, Bitcoin has shown bullish behavior following rate stabilization, especially when open interest fades and liquidation activity slows. That backdrop, paired with strong price support, gives analysts reason to watch closely for upside movement.

Data from CoinGlass adds to the bullish narrative, reporting growing ask liquidity near the $106,000 level. This could trigger a short squeeze if buying accelerates. While BTC continues to trade in a narrow range, the combination of macro stability and onchain cleanup suggests a potential shift in momentum may be approaching.

Bitcoin is currently consolidating just below the $105,000 mark, trading around $104,900. The price action suggests a neutral-to-slightly bullish setup, supported by tight Bollinger Bands and steady RSI values. On the 2-hour chart, BTC has maintained higher lows near $104,000, forming a consistent demand zone. RSI is hovering near 48, indicating balanced momentum with no immediate overbought or oversold conditions. MACD, while still negative, shows signs of flattening, hinting at a possible shift in short-term trend.

The 30-minute chart reinforces this view, with RSI near 51 and MACD showing a modest positive crossover. Bollinger Bands remain relatively tight, suggesting price is coiling ahead of a potential move. In the 1-minute chart, short-term momentum remains weak. RSI at 38.26 and a flat MACD reflect lackluster intraday interest. Price is compressing between $104,864 and $104,999, with minimal volatility during the observed period.

Overall, BTC appears to be in a consolidation phase with a bullish bias. A decisive break above $105,500 could signal momentum toward $107K, while holding $104K remains key for bullish continuation. Short squeeze potential may increase if spot volume rises near resistance levels.