Bitcoin Surges Past $94K: Is the BTC Bull Market Resuming?

Bitcoin Surges Past $94K: Is the BTC Bull Market Resuming?

Bitcoin bulls seem to be regaining control of the short-term trend, driving the BTC price above $94,000. However, liquidity indicators suggest caution.

Key Takeaways:

Bitcoin has successfully reclaimed the $94,000 mark, reinforcing a short-term bullish trend following a period of uncertainty.
Despite this price increase, bid-ask liquidity remains low, indicating that while buyers are entering the market, their presence is not yet substantial.

Bitcoin has recently surged above $94,000, enhancing its short-term bullish trajectory after experiencing several days of indecision. Nevertheless, the bid-ask liquidity remains subdued, suggesting that while buyers are beginning to take action, they are not yet participating in large enough volumes.

Bitcoin's Uptrend Persists Ahead of FOMC Meeting

Bitcoin faced challenges in securing a decisive daily close above $93,000 after the initial structural breakout on December 3. As the broader market awaited the Federal Open Market Committee (FOMC) meeting, traders adopted a cautious wait-and-see approach, leading to several days of sideways price action.

This situation changed on Tuesday when BTC decisively broke through the $93,500 mark, creating a higher high that restored short-term bullish momentum.

Cryptocurrencies, Bitcoin Price, Investments, Markets, Cryptocurrency Exchange, Bitcoin Futures, Binance, Price Analysis, Stablecoin, Market Analysis, Liquidity
BTC four-hour chart. Source: Cointelegraph/TradingView

On the four-hour chart, BTC absorbed the entire fair value gap (FVG) between $87,500 and $90,000 but did not trigger a subsequent price impulse. However, the latest breakout has eliminated that hesitation, indicating renewed strength amid ongoing macroeconomic volatility.

Despite this beneficial shift, BTC is still trading close to the monthly volume-weighted average price (VWAP) on both the four-hour and daily timeframes. A sustained position above the monthly VWAP after the FOMC meeting would provide further confirmation of a trend reversal supported by momentum.

Trader Jelle commented on the recent price action, stating:
"With $93,000 now surpassed ahead of the FOMC event, the market sentiment is tilted toward the upside, though traders may still be wary of any volatility following the meeting."

Related: Bitcoin Retail Inflows to Binance Hit 400 BTC Record Low in 2025

Bitcoin Price Rises, Yet Liquidity Concerns Persist

Even with Bitcoin's recent bullish price movements, liquidity metrics raise some concerns. The bid-ask ratio for Bitcoin has remained relatively low and inconsistent. During the steep decline from $100,000 to $80,000 in November, the ratio turned positive as large bids absorbed the sell-off. However, the current rally does not reflect the same aggressive buying behavior, indicating that the movement above $93,500 is primarily price-driven, with new demand still coming into play.

Cryptocurrencies, Bitcoin Price, Investments, Markets, Cryptocurrency Exchange, Bitcoin Futures, Binance, Price Analysis, Stablecoin, Market Analysis, Liquidity
Bitcoin bid-ask ratio and liquidation data analysis. Source: Hyblock

This suggests a market where buying activity is present but lacks the strong, committed volume typical of robust uptrends. Currently, price momentum appears to outpace the strength of market depth.

Additionally, Bitcoin's exchange pricing premium metrics tell a nuanced story. The Korea Premium Index, which gauges retail sentiment, has dropped significantly. Earlier this year, Korean markets consistently traded at premiums during price rallies; however, that exuberance has diminished, now showing near-flat or slightly negative numbers, suggesting retail speculators are not yet getting in on the action.

Conversely, the Coinbase Premium Index, which acts as a barometer for U.S. investor sentiment, has shifted back to positive territory. Historically, modest positive readings in this index indicate spot accumulation during the early phases of trend reversals.

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