The move comes just days before the Federal Reserve’s upcoming policy announcement, adding extra weight to market sentiment.

Analyst Ali Martinez pointed out that long positions are rising rapidly alongside open interest, signaling enthusiasm from bullish traders.

However, he warned that such positioning at key resistance levels often increases the risk of a long squeeze, where leveraged longs are forced to exit if prices reverse.

Meanwhile, Michaël van de Poppe noted that Bitcoin’s climb into range resistance ahead of the FOMC meeting could be a “great sign,” but also cautioned that such moves often end with sharp retracements. His outlook suggested that the current rally might be more about testing liquidity levels than establishing a sustainable breakout.

Adding to the debate, Crypto Rover highlighted a long-term signal on Bitcoin dominance charts that historically precedes altcoin rallies. If history repeats, the setup could pave the way for a major “altseason,” where capital rotates from Bitcoin into alternative cryptocurrencies.

At the time of writing, Bitcoin is trading near $116,148 after briefly touching $117,346 earlier in the session.

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The daily relative strength index (RSI) sits at 58.5, showing momentum in neutral-to-bullish territory, while price remains below the $120,000 psychological threshold that has repeatedly capped gains in recent months.

With positioning stretched and the Fed decision looming, traders are split between expecting continuation higher or preparing for another shakeout. Whether Bitcoin can finally clear resistance or faces another pullback may also dictate how soon altcoins get their turn in the spotlight.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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