The BTC price has managed to surpass the psychological barrier of $94,000 once again, reaffirming buyer dominance in the immediate trend after days of uncertainty. According to market analyst Trader Jelle, this technical move invalidates previous indecision and establishes a higher high needed to restore bullish momentum, just before global markets react to upcoming monetary policy decisions.
This rally materialized on Tuesday when the asset cleanly broke through the $93,500 level, exiting a sideways consolidation phase that had kept traders in a wait-and-see stance. On the four-hour chart, the asset had previously absorbed the fair value gap (FVG) located between $87,500 and $90,000, although initially without enough strength to trigger an immediate follow-up impulse until this latest breakout.
On the other hand, despite this positive shift in price structure, the leading cryptocurrency still trades near the monthly volume-weighted average price (VWAP) on both four-hour and daily timeframes. A sustained hold above this key indicator following the Federal Open Market Committee (FOMC) meeting would serve as additional technical confirmation that the trend reversal is backed by genuine and lasting momentum.
Can current liquidity sustain the short-term price rally?
The relevance of this move lies in its ability to dispel doubts that arose following the initial structure break in early December. With the broader market bracing for high-impact macroeconomic events, the digital economy seeks to decouple from traditional volatility. This technical milestone not only reclaims lost ground but redefines the expectations of retail and institutional investors who had adopted a strategy of extreme caution given the lack of clear direction in previous sessions.
However, underlying liquidity metrics present a mixed picture that invites prudence. Unlike the November drop, where large bids absorbed the sell-off, the current rally does not show aggressive bidding in the bid-ask ratio. This implies that, for the moment, price strength is outpacing market depth, suggesting that new demand is still trying to catch up with momentum-driven price action.
Likewise, exchange premium indices reveal a notable divergence in global investor behavior. While the Korea Premium Index, a key gauge of retail sentiment, has cooled significantly to near-flat or negative levels, the Coinbase Premium Index has returned to positive territory. Historically, modest positive readings in this US index tend to signal spot accumulation during the early stages of a trend reversal, which could be a favorable omen.
To conclude, the market is at a turning point where price action dictates optimism, but volume data demands validation. With the $93,000 level now turned into support, market bias leans toward the upside, although traders will remain highly sensitive to any volatility post-Fed announcements. The ability to hold these levels without a deep pullback will define whether this move is the start of a new sustained bullish phase or simply a liquidity trap before a larger correction.
