Bitcoin Holds Key $98K Support Amid Open Interest Drop; Volatility Looms Ahead of FOMC Decision
Bitcoin remains volatile as traders await the upcoming Federal Open Market Committee (FOMC) decision, a major event likely to impact global markets and the cryptocurrency sector. The Bitcoin price is holding above the critical $98,300 support level, with technical indicators showing the market is oversold in the short term. Notably, there has been an $11.3 billion decline in 180-day open interest on major exchanges like Bitget and CME, reflecting a significant exit of leveraged positions. Historically, such drops in open interest have preceded both strong rallies and sharp corrections. While most platforms report leveraged money leaving, Gate.io stands out with continued capital inflows. Market sentiment remains fragile and divided, with traders concerned that a failure to maintain the $98,300 support could prompt a deeper correction—possibly toward $91,000. Continued support above $98,300 keeps the market structure bullish, but all eyes are on the FOMC decision and price action near this key level. Traders should pay close attention to volatility, historical price reactions to FOMC news, and rapidly shifting leverage data, as short-term moves could present both risks and opportunities.
Neutral
The news presents a balanced outlook for Bitcoin. The price is holding above a major support at $98,300, maintaining a bullish market structure. However, the significant drop in open interest on major exchanges signals that leveraged traders are exiting, which could result in either a relief rally if support holds, or a deeper correction if it breaks. The market is also waiting for the FOMC decision, an event that typically triggers large moves in crypto prices. Given these mixed signals—oversold technicals suggesting possible upside, but fragile sentiment and leverage outflows indicating caution—the overall impact is neutral until a clearer direction emerges.