Bitcoin Price Holds Strong at $94K as Traders Bet Big on Fed Outcome
Bitcoin 189 million in new long positions as traders anticipate this week’s Federal Reserve interest rate decision (May 7).
Key Bitcoin Market Trends Ahead of FOMC:
- BTC defends $94,500 support amid bullish futures positioning.
- Open interest surges by 2,000 BTC ($189M) with 15% higher trading volume.
- Funding rates near neutral, but brief spikes suggest leveraged optimism.
- Analysts predict post-FOMC volatility, with potential upside if Fed signals dovishness.
Why Are Bitcoin Traders Going Long Before the Fed?
1. Futures Market Shows Strong Bullish Conviction
Bitcoin analyst Axel Adler Jr. highlighted a bullish cluster of long positions forming around 94,400∗∗, ∗∗94,400∗∗, ∗∗97,500.
- Open interest (OI) up $189M – Indicates fresh capital entering the market.
- Volume up 15% – Confirms sustained buying interest despite recent dips.
2. Fed Decision Could Trigger Next Big BTC Move
Historical data from Swissblock shows:
- BTC momentum slows pre-FOMC, then spikes in volatility afterward.
- 25-day Rate of Change (ROC) remains bullish – Similar to Oct-Nov 2024 and April 2025 rallies.
Michaël van de Poppe (MN Capital) notes:
“Bitcoin could continue grinding upward post-FOMC, especially if Gold corrects, signaling a shift in market cycles.”
What to Watch After the Fed Meeting
- Fed’s rate stance – A dovish tilt could fuel BTC’s next leg up.
- Jerome Powell’s tone – Hawkish comments may trigger short-term pullbacks.
- Gold’s reaction – A drop in gold could signal capital rotation into Bitcoin.
Key BTC Price Levels:
✅ Support: 94,000−94,000−94,500 (critical bull defense zone)
🚀 Resistance: 97,500(Aprilhigh),then97,500(Aprilhigh),then100,000 (psychological barrier)
Conclusion: Will Bitcoin Break Out Post-FOMC?
With bulls loading up on longs and Fed volatility looming, Bitcoin could see a major move this week. If the Fed signals rate cuts or softer policy, BTC may retest $100K. Conversely, a hawkish surprise could trigger a pullback before the next rally.
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