Bitcoin Bulls Target $93.5K As Short Positions Turn Magnetic
After the US Fed left interest rates unchanged, Bitcoin retreated from its highs, but futures market data suggests that traders may try to hold short liquidity in BTC's $93,500 range.
Bitcoin (BTC) staged a quick rally to $90,600 on Wednesday, but gains evaporated when the US Federal Reserve decided to forego interest rate cuts. Despite the whipsaw price action from Bitcoin, the data shows that traders see a possible move towards $93,500. One analyst noted the price level as a key liquidity zone, with more than $4 billion in leveraged short positions at risk of unwinding.
Main Receptors:
More than $4.5 billion in BTC short liquidation has settled to $93,500, making it a stop-hunting level for traders.
Coinbase's Bitcoin premium remains negative, indicating weak US spot BTC demand.
Potential short liquidators have set a price target of $93,500 for Bitcoin.
According to crypto trader Mark Cullen, the $93,500 level is prominent on the Bitcoin exchange's liquidity map. Cullen says this price zone is a visible “come and get me!” Symptom, the fluid level sticks out like a “sore thumb”.
According to CoinGlass data, $4.5 billion has been raised in aggregate short positions of around $93,500. If Bitcoin pushes into that range, forced liquidations could accelerate price action, turning a slow rally into a fast one led by shorts covering.
However, the underlying participation is uneven. The Coinbase Bitcoin Premium Index, which tracks U.S. spot demand across the exchange, is still deeply negative. This suggests that the rally is being driven by futures and leverage rather than strong position buying from US investors.
Related: Bitcoin ETF $86K break-even level amid US wirehouse influx reports
The “danger-off” signal is still on despite the noise.
Crypto analyst Leo Ruga highlighted that both the composite (including SPX, GOLD, Crude Oil and DXY) are tied in a risk-free range with BTC's risk oscillator and the onchain pressure oscillator. The risk oscillator is currently sitting near 52, onchain pressure is higher than 34, which is associated with market stress rather than trend expansion.
Ruga said selling pressure must end for further recovery. Until then, the strong bullish trend cannot continue.
Analyst Pelin A. Well's ratio is sending a neutral-to-cautious signal rather than a clear bullish signal. Currently, the ratio sits near the 100-day moving average but is below the highs.
This shows that the whales are not being sold, but they are not in a position for price expansion. Without significant movement in the Whale Ratio, volatility can continue without a strong directional bias.
Related: Bitcoin eyes $90K before FOMC: Next look at these BTC price levels
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