Bitcoin (BTC) bulls seem to have regained control of the short-term trend, pushing the BTC price beyond $94,000, even as liquidity indicators raise concerns.
Key takeaways:
Bitcoin has reclaimed $94,000, bolstering the short-term bullish structure after a few days of uncertainty.
Bid-ask liquidity has remained subdued despite the breakout, indicating buyers are entering but not in substantial numbers yet.
Bitcoin holds its uptrend ahead of FOMC meeting
Bitcoin faced challenges in securing a decisive daily close above $93,000 after the initial structural break on Dec. 3. With the broader market preparing for the upcoming FOMC meeting, traders adopted a largely wait-and-see approach, leading to several days of sideways movement.
On Tuesday, however, BTC broke cleanly through $93,500, generating the higher high required to restore short-term bullish momentum.
On the four-hour chart, BTC had previously absorbed the entire fair value gap (FVG) between $87,500 and $90,000 but couldn’t trigger a follow-through impulse. The latest breakout has invalidated that hesitation and indicates renewed strength despite macroeconomic volatility.
Even with the upward movement, BTC is still trading near the monthly VWAP (volume-weighted average price) on both the four-hour and daily charts. A sustained hold above the monthly VWAP after the FOMC would further confirm a momentum-driven trend reversal.
Trader Jelle, commenting on the recent sideways action, noted:
“Pretty boring day so far, with $BTC still chopping around the monthly open… Watch for a lower low below 87.6 or a clean break of the grey box at 93k.”
With $93,000 now surpassed ahead of the FOMC event, market sentiment leans toward the upside, although traders may remain sensitive to any post-meeting volatility.
Related: Bitcoin retail inflows to Binance ‘collapse’ to 400 BTC record low in 2025
Bitcoin price surges but liquidity remains a concern
Despite Bitcoin’s bullish price movement, liquidity metrics are not yet showing full confidence. Bitcoin’s bid-ask ratio has remained relatively low and inconsistent. During November’s sharp drop from $100,000 to $80,000, the ratio turned positive as larger bids absorbed the sell-off. However, the current rebound has not displayed the same level of aggressive bidding, suggesting that the rise above $93,500 is price-driven, with new demand still catching up.
This highlights a market where buyers are acting, but not in the strong, committed clusters typical of robust uptrends. For now, price strength surpasses depth strength.
Bitcoin’s exchange pricing premium data tells a similarly nuanced story.
The Korea Premium Index, a vital measure of retail sentiment, has declined significantly. Earlier this year, Korean markets often traded at premiums during rallies; however, that enthusiasm has now faded to near-flat or slightly negative levels, indicating that retail traders are not yet pursuing the move.
Conversely, the Coinbase Premium Index, a proxy for U.S. investors, has turned positive again. Historically, modest positive readings have signaled spot accumulation during the early stages of trend reversals.
Related: Bitcoin Hash Ribbons flash ‘buy’ signal at $90K: Will BTC price rebound?
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
