Bitcoin (BTC) bulls seem to have regained control of the short-term trend, pushing the BTC price over $94,000, even as liquidity indicators signal caution.
Key takeaways:
Bitcoin has reclaimed $94,000, bolstering the short-term bullish stance after a few days of uncertainty.
Bid-ask liquidity remains subdued despite the breakout, suggesting that while buyers are entering the market, their volume isn’t substantial yet.
Bitcoin uptrend holds steady before FOMC meeting
Bitcoin faced challenges in securing a solid daily close above $93,000 after the initial structural break on Dec. 3. With traders adopting a cautious approach ahead of the FOMC meeting, the market experienced several days of sideways movement.
That shifted on Tuesday when BTC moved decisively past $93,500, establishing the higher high necessary for short-term bullish momentum.
On the four-hour chart, BTC absorbed the entire fair value gap (FVG) between $87,500 and $90,000 but failed to trigger a subsequent impulse. The latest breakout has negated that indecisiveness, indicating renewed strength despite looming macroeconomic volatility.
Even with the upward shift, BTC continues to trade near the monthly VWAP (volume-weighted average price) on both the four-hour and one-day charts. A sustained hold above the monthly VWAP post-FOMC would further validate a momentum-backed trend reversal.
Trader Jelle noted on recent sideways trading:
“Pretty mundane day so far, with $BTC still fluctuating around the monthly open… Look for a lower low below 87.6 or a clear break of the grey box at 93k.”
With $93,000 cleared ahead of the FOMC, market sentiment leans toward the upside, although traders might be cautious of any post-meeting volatility.
Related: Bitcoin retail inflows to Binance ‘collapse’ to 400 BTC record low in 2025
Bitcoin price surges but liquidity raises concerns
Despite Bitcoin’s bullish price movement, liquidity metrics still do not inspire full confidence. The bid-ask ratio for Bitcoin has remained relatively low and erratic. During the steep decline in November from $100,000 to $80,000, the ratio turned positive as large bids managed the sell-off. However, the current recovery has not shown the same level of aggressive bidding, indicating that the price move above $93,500 is primarily driven by price action, with new demand still trying to catch up.
This indicates a market where buyers are present but not in the heavy, committed clusters characteristic of strong uptrends. For now, price strength is outpacing depth strength.
Bitcoin’s exchange pricing premium data tells a similarly complex story.
The Korea Premium Index, an essential measure of retail sentiment, has significantly declined. Earlier in the year, Korean markets frequently traded at premiums during rallies; however, that enthusiasm has now faded to nearly flat or slightly negative levels, suggesting retail speculators are not yet chasing the rally.
In contrast, the Coinbase Premium Index, a proxy for U.S. investors, has turned positive once more. Historically, slight positive readings indicate spot accumulation during the initial phases 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.
