Bitcoin bulls seem to have regained control of the short-term market trend, pushing the BTC price above $94,000, although underlying liquidity indicators are still sending warning signals.
Key points:
BTC successfully reclaimed $94,000, significantly strengthening the short-term bullish structure after several days of uncertainty.
Despite the price breakout, the liquidity on the buy and sell orders remains sluggish, indicating that buyers are gradually entering the market, but the scale has not yet reached sufficient levels.
Since the structural breakout on December 3, BTC has struggled to achieve a decisive daily close above $93,000. As the broader market prepares for the upcoming FOMC meeting, traders have generally adopted a wait-and-see attitude, leading to several days of sideways consolidation.
This situation changed on Tuesday, with BTC price clearly breaking through the $93,500 level, forming a higher high necessary 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 failed to trigger a subsequent upward trend. This breakout broke the previous hesitation and indicated that despite macroeconomic event volatility, Bitcoin is regaining strength.
Even with the upward shift, BTC still hovers near the monthly volume-weighted average price (VWAP) on the four-hour and daily time frames. If it can maintain stability above the monthly VWAP after the FOMC meeting, it will further confirm this momentum-supported trend reversal.
Trader Jelle commented on the recent sideways movement:
With the successful breakout above the $93,000 level before the FOMC meeting, the market leans towards an upward trend; however, traders may still remain highly vigilant regarding any volatility post-meeting.
Although BTC price shows a bullish trend, liquidity indicators have not yet demonstrated complete market confidence. The bid-ask spread ratio for BTC remains relatively low and unstable. During the sharp drop from $100,000 to $80,000 in November, this ratio turned positive as large buy orders absorbed selling pressure. However, professional analysts point out that the current rebound has not shown the same positive buying momentum, indicating that the trend above $93,500 is primarily price-driven, while new demand is still gradually following.
This phenomenon highlights the current market state: buyers are active, but they do not exhibit the typical large-scale, decisive concentrated buying patterns seen in strong upward trends. Currently, price strength significantly exceeds market depth strength.
BTC exchange pricing premium data also reveals a more complex market situation.
As an important indicator of retail investor sentiment, the South Korean premium index has significantly cooled down. Earlier this year, the South Korean market often traded at a premium during upward trends; however, market research indicates that this enthusiasm has waned to near parity or slightly negative territory, suggesting that retail speculators have not actively pursued this round of gains.
Meanwhile, the Coinbase premium index, a barometer for U.S. investors, has turned positive. Historically, slight increases often indicate that spot accumulation occurs at the early stages of a trend reversal.
Related: Bitcoin hash ribbon indicator flashes "buy" signal at $90,000: Will BTC price rebound?
Original article: “Bitcoin Back Above $94K: Is the BTC Bull Run Back On?”
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