Bitcoin rallies fail at $94K despite Fed policy shift: Here’s why

Bitcoin’s price action has remained subdued this week, failing to sustainably reclaim the monthly volume-weighted average price (VWAP) despite the Federal Reserve’s 0.25% interest rate cut. The market continues to face resistance around $93,000, limiting bullish momentum. Analysts attribute this struggle not to sentiment shifts, but to a significant contraction in liquidity, particularly from stablecoins, with inflows declining nearly 50% since August. This reduced buying power means rallies are shallow and driven by reduced selling pressure rather than strong accumulation. Key price levels to watch include $94,000–$98,000 as potential targets, but a break below $88,000 could trigger a further decline towards $80,600. Some bullish traders believe these dips are deliberate 'shakeouts' to remove weaker investors, requiring a weekly close above $90,000 to regain upward momentum.

(Source：Cointelegraph)