Bitcoin Price Briefly Spikes to $106K on Fed Pause, Pulls Back to $104K
Bitcoin price initially surged past $106,000 following the Federal Reserve’s decision to pause interest rate hikes, triggering a rapid short squeeze and over $600 million in derivatives liquidations across BTC, ETH, SOL and DOGE futures. Thin weekend liquidity and algorithmic buying drove a $2,500 one-hour rally before profit-taking pulled the price back toward $104,000. Trading volumes remain near weekly averages, indicating limited volatility. Bitcoin holds a solid uptrend with support near $103,500 and resistance around $105,000–$106,600, where large clusters of cost-base holders stand. Traders are watching for ETF flow updates, potential Fed easing and fiscal policy developments as key drivers for renewed momentum.
Neutral
The initial spike to $106,000 on the Fed pause indicates bullish sentiment, but the subsequent pullback to $104,000 and sideways trading suggest consolidation. Support at $103,500 and resistance near $105,000–$106,600 imply limited near-term momentum until key levels are breached. Traders are awaiting ETF flows and policy cues, making the overall outlook neutral despite underlying bullish drivers.