Capital is running out, and Bitcoin is "nervous" in the $90K zone even though the Fed has cut interest rates

Last week, Bitcoin (BTC) continued to show weakness around the $90,000 level, despite the US Federal Reserve just implementing a 0.25% interest rate cut. The market repeatedly refused any attempts to break above the $93,000 threshold, leaving investors curious if there is something “strange” in Bitcoin’s bullish momentum.

Liquidity Deterioration - The Thorn in the Side of the Bulls

Analyst Darkfost pointed out a serious issue: it’s not market sentiment, but the tightening of liquidity that is constraining BTC’s upward momentum. The flow of stablecoin capital is the “driving finger” of the bull run, and currently, this figure is plummeting.

Specifically, the flow of ERC-20 stablecoin capital into exchanges has dropped from $158 billion (August) to only about $76 billion currently — a nearly 50% decrease. Even the 90-day long-term average has fallen from $130 billion to $118 billion, confirming that this trend is not temporary but structurally worsening.

As a result, buying power has significantly weakened. Darkfost comments that recent Bitcoin recoveries are not due to strong accumulation but merely weakening selling pressure — in other words, the market lacks new blood to sustain higher peaks or maintain key support levels. Until new capital flows back, Bitcoin’s rallies will remain shallow.

The Rising Wedge Pattern Forewarning: Risks Below $88,000 Are Very High

From a technical perspective, Bitcoin has failed three consecutive times to break above $93,000. After the FOMC meeting, BTC clearly formed a swing failure pattern (SFP), signaling exhaustion and deepening the weakness in the trend.

More concerning: BTC is gradually confirming an ascending wedge pattern. If the price falls below $88,000 and a breakdown of the bearish structure (BOS) occurs, it will trigger an outside liquidity sweep around $84,000, with a risk of plunging deeper toward the quarterly low of $80,600 — areas with no effective support on higher timeframes.

Trader Daan Crypto Trades notes that the $97,000–$98,000 zone remains the next important “price magnet,” but BTC must first break through the $94,000 barrier. Currently, the market remains vulnerable to strong volatility, continuing to trap both long and short positions.

Opportunities Lie in the Weekly Close

Bullish traders like Captain Fabik still believe these are deliberate “shakeouts” aimed at removing weak-handed investors. To regain the uptrend, BTC needs to close the week above $90,000, ideally near $93,000, thereby establishing a structural foundation for the bulls to attack the $96,000 zone where momentum could erupt.

At present, Bitcoin stands at a crossroads: one path is a return of liquidity, pushing the price beyond current pressure; the other is continued selling, activating the rising wedge pattern with unfavorable consequences. Next week will be crucial in determining the next direction.