Bitcoin (CRYPTO: BTC) is seeing a surge in bullish sentiment ahead of Wednesday's expected 25 bps Fed rate cut, with traders rotating back into risk assets.
What Happened: Bitcoin rallied 4% on Tuesday to reclaim the $93,000 level, triggering a sharp shift in prediction market probabilities.
Crypto analyst Kaleo noted the current environment mirrors October 2024—high fear, heavy bearish positioning, and expectations of another major collapse.
That period ended up marking a bottom before BTC pushed to new all-time highs, a reminder that extreme pessimism often precedes major opportunities.
With the FOMC meeting approaching, traders emphasized that holding key support levels could set Bitcoin up to test the $100,000 mark before year-end.
Also Read: : Bitcoin Holds $90,000 As Ethereum, XRP, Dogecoin Wobble On Weak ETF Inflows
What's Next: Market commentator ChimpZoo said Bitcoin is set for an asymmetric squeeze.
A $7,000 move higher from here would liquidate ~3,500 BTC worth of short positions, while a $10,000 drop would liquidate only ~1,350 BTC in long positions, showing the market is overwhelmingly short-biased.
For Ethereum, Cold Blooded Shiller highlighted the breakout traders have been waiting for, targeting the most obvious liquidity zone to squeeze shorts.
If ETH can sustain above this level, broader market optimism could finally return.
Read Next:
Image: Shutterstock