Bitcoin Price Analysis: Can It Reach $95,000 by March End?
Bitcoin’s price has rebounded above $80,000, experiencing a 3% increase after recent declines. Potential bullish momentum hinges on breaking through resistance at $85,000, influenced by market dynamics and liquidation levels. Mixed trading behaviors on major exchanges could affect Bitcoin’s upward movement toward higher price targets.
Bitcoin experienced a recent uplift of 3% following a prolonged downturn since late January. The leading cryptocurrency successfully rebounded above the $80,000 mark after a brief dip below this level on March 11. This recovery was notably influenced by the US core Consumer Price Index (CPI), which registered a lower-than-anticipated rate of 3.1% on March 12, suggesting a favorable market structure for a possible rapid bullish shift.
When Bitcoin’s price fell on March 9, it subsequently retried the critical resistance zone between $84,000 and $85,000 three times. This activity led traders to establish substantial short positions within this range. Data from liquidation heatmaps indicates the presence of over $300 million in short positions at this price point, which would be liquidated if Bitcoin’s price surpassed the $85,000 resistance. Furthermore, with little downside liquidity below $77,000, there is an increased likelihood of Bitcoin advancing toward upside liquidity.
Additionally, an unfilled CME Bitcoin futures gap between $85,000 and $86,000 from the previous weekend, along with a proven record of gap fillings in the past months, raises the probability of converting the $85,000 overhead resistance into support. Achieving this could position Bitcoin to encounter the next significant resistance at $90,000, with a potential liquidation of over $1.6 billion in short positions, enabling a revisit of the $95,000 resistance level.
Mark Cullen, a Bitcoin analyst, expressed a similar forecast for Bitcoin but cautioned that the current price movements are “corrective,” suggesting further consolidation before a substantial increase. Conversely, Valeria, a crypto analyst and funded trader, observed signs of distribution near the $85,000 mark, predicting a short-term bearish phase where Bitcoin may dip below $80,000 before any bullish breakout.
Recent trading trends indicate that Binance spot traders have been actively selling, particularly noticed during price drops to $76,650. In contrast, Coinbase traders have emerged as robust spot buyers, successfully helping Bitcoin rebound past $80,000. On March 12, a similar juxtaposition was evident, whereby Binance traders sold around the $85,000 resistance while Coinbase participants maintained price support at $81,000 during early trading sessions in the US.
This mixed trading behavior from the two leading platforms could potentially dampen Bitcoin’s momentum to ascend through resistance levels. Consequently, for Bitcoin to successfully reclaim higher thresholds at $85,000, $90,000, and ultimately $95,000 in the forthcoming weeks, a more harmonious trading directive between Binance and Coinbase may be necessary.
In conclusion, Bitcoin’s recent price movement showcases a potential for recovery and bullish momentum, contingent on overcoming the $85,000 resistance level. The juxtaposition of trading activities on leading exchanges, along with significant liquidation points, reflects the complexity of the current market dynamics. The outlook remains mixed, with analysts providing varying perspectives on the immediate future of Bitcoin’s price trajectory. Investors should remain cautious and conduct thorough research before making any financial decisions.
Original Source: www.tradingview.com
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