Bitcoin slipped below $88,000 after the US Federal Reserve held interest rates steady, yet derivatives data show traders targeting a potential move toward $93,500. Futures positioning suggests a “liquidation sweep” attempt could accelerate price action, even as spot-demand signals remain weak.
Bitcoin retreated from intraday highs after the Fed kept policy unchanged, with BTC trading near $87,700 in early New York activity.
Crypto trader Mark Cullen highlighted $93,500 as a key level on exchange liquidation maps, calling it a “Come get me!” signal for the price. The analyst pointed to exchange data that tracks where leveraged traders face forced closures.
CoinGlass data showed more than $4.5 billion in cumulative short liquidations clustered near $93,500. If BTC rises into that zone, short covering could amplify the rally through rapid buy orders.
Despite the liquidation target, US spot signals have not confirmed broad demand. The Coinbase Bitcoin premium index, which tracks Coinbase pricing versus other venues, remained deeply negative on CoinGlass charts.
That negative premium suggests weaker US spot Bitcoin ETFs, even as leveraged positioning stays active. Consequently, traders may lean on futures market momentum rather than sustained spot buying.
Flows also softened. Farside Investors data showed U.S. spot bitcoin exchange-traded funds (ETFs) posted net outflows of about $19.6 million on Jan. 28.
BlackRock’s iShares Bitcoin Trust (IBIT) saw $14.2 million in outflows, while Fidelity’s FBTC recorded $19.5 million in inflows, the data showed. In addition, uneven flows across funds have contributed to choppy short-term moves.
Also Read: Bitcoin Price Trades at $88,500 as Market Awaits Next Big Catalyst
The Fed kept its key rate in a 3.50%–3.75% range on Wednesday, and Chair Jerome Powell signaled patience on future cuts. Powell said, “The economy has once again surprised us with its strength,” and added the Fed is “well-positioned” to wait for more data.
Macro crosscurrents have kept crypto subdued. Bitcoin has lagged a commodities rally that pushed gold to record levels, while the US dollar strengthened after U.S. Treasury Secretary Scott Bessent reiterated support for a strong-dollar policy, according to market commentary cited in the provided material.
On-chain and multi-asset indicators also leaned cautiously. CryptoQuant analyst Leo Ruga said the BTC risk oscillator sat near 52, while an on-chain pressure oscillator stayed above 34, levels he associated with market stress rather than trend expansion.
Whale activity looked neutral. Analyst Pelin Ay said the exchange Whale Ratio hovered near its 100-day moving average and remained well below extreme readings, suggesting large holders were not aggressively selling or positioning for expansion.
Market technicians have also identified key levels. FxPro chief market analyst Alex Kuptsikevich said bitcoin faced resistance near $89,000 and has defended support near $85,000, while remaining in a bearish consolidation.
Attention now shifts to catalysts beyond the Fed. Markets are watching upcoming megacap tech earnings, and a Feb. 2 White House meeting with banking and crypto leaders focused on the Senate’s “Clarity Act,” as cited in the provided material, for any impact on risk sentiment and crypto market structure.