BTC Surpasses $94K Before FOMC Meeting, Yet This Indicator Trails Behind Prices

The bulls in Bitcoin (BTC) seem to have regained control of the short-term trend, driving the BTC price above $94,000, even as liquidity indicators raise concerns.

Key takeaways:

• Bitcoin has successfully surpassed $94,000, bolstering the bullish structure in the short term after several days of uncertainty.

• Despite the breakout, bid-ask liquidity has remained low, suggesting that while buyers are entering the market, they are not doing so in significant volume.

Bitcoin sustains uptrend ahead of FOMC meeting

Bitcoin faced challenges in achieving a decisive daily close above $93,000 after the initial structural break on December 3. As the broader market prepared for the forthcoming FOMC meeting, traders took a largely wait-and-see approach, leading to a period of sideways movement.

This changed on Tuesday as BTC confidently surpassed $93,500, creating the higher high necessary to restore bullish momentum in the short term.

On the four-hour chart, BTC had previously covered the total fair value gap (FVG) between $87,500 and $90,000 but failed to initiate a follow-up push. The recent breakout has quelled that uncertainty, indicating renewed strength despite macroeconomic volatility.

Even with this upward movement, BTC continued to trade close to the monthly VWAP (volume-weighted average price) on both the four-hour and daily timeframes. A sustained hold above the monthly VWAP post-FOMC would further validate a momentum-driven trend reversal.

Trader Jelle commented on the recent sideways action, saying:

“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, the market bias leans towards the upside, although traders might stay alert to potential post-meeting volatility.

Related: Bitcoin retail inflows to Binance ‘collapse’ to 400 BTC record low in 2025

Bitcoin price surges but liquidity concerns linger

While Bitcoin’s bullish price shift is evident, liquidity metrics aren’t signaling complete confidence yet. The bid-ask ratio for Bitcoin has remained relatively low and inconsistent. During November’s sharp decline from $100,000 to $80,000, the ratio turned positive as large bids managed to absorb the sell-off. However, the current rebound lacks similar aggressive bidding, indicating that the rise above $93,500 is price-driven, with new demand still lagging.

This highlights a market where buyers are active but not in the robust, committed volumes typical of strong uptrends. At present, price strength is outpacing depth strength.

Bitcoin’s exchange pricing premium data tells a similarly complex tale.

The Korea Premium Index, an important measure of retail sentiment, has notably cooled. Earlier this year, Korean markets frequently traded at premiums during rallies; however, that enthusiasm has diminished to nearly flat or slightly negative levels, indicating that retail speculators are not aggressively pursuing the current movement.

Conversely, the Coinbase Premium Index, which serves as a proxy for U.S. investors, has turned positive once again. Historically, modest positive readings suggest 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.