Bitcoin Surges 4.50% as Fed Rates Boost Momentum

Bitcoin (BTC), the world’s largest cryptocurrency, is showing signs of a significant shift from its prolonged consolidation phase to a period of massive upside momentum. This shift is largely attributed to the Federal Reserve's decision to maintain steady interest rates during the March FOMC meeting, which has propelled BTC above a critical resistance level.

Technical analysis experts have noted that following the March FOMC meeting, BTC successfully breached its prolonged consolidation and overcame resistance from the 200 Exponential Moving Average (EMA) on the daily timeframe. However, the confirmation of a sustained rally or a continuation of consolidation remains uncertain. Recent price movements and historical patterns suggest that if BTC closes a daily candle above the $85,800 mark, there is a strong possibility it could surge by 8% to reach $92,600 in the coming days. This bullish outlook is contingent on BTC maintaining its position above the $85,600 mark; otherwise, the rally may falter.

At the time of reporting, Bitcoin is trading near $85,500, reflecting a surge of over 4.50% in the past 24 hours. This price action indicates heightened participation from traders and investors, as evidenced by a 40% increase in trading volume compared to the previous day.

Following the bullish price action and impressive upside momentum, traders appear optimistic about the asset. On-chain analytics data reveals that traders are currently over-leveraged at $83,400, holding nearly $920 million worth of long positions. Additionally, $86,300 is another over-leveraged level where traders betting on the short side have held $375 million worth of short positions. When combined with technical analysis, these on-chain metrics suggest that bulls are dominating the market, pushing BTC towards reclaiming the $90,000 mark.