Bitcoin Price Forecast: Will It Reach $95,000 by March’s End?
Bitcoin has seen a 3% increase, recovering to $80,000 after prior declines, influenced by favorable CPI data. Testing key resistance from $84,000 to $85,000, high short positions could trigger bullish momentum if surpassed. To regain higher highs, unified trading activity is essential between exchanges, as divergent trends may impact future growth.
Bitcoin recently experienced a 3% increase in value following persistent declines since late January. The cryptocurrency managed to recover past the $80,000 mark after a minor drop below on March 11. Notably, the US core Consumer Price Index (CPI) reported a lower-than-expected figure of 3.1% on March 12, creating favorable conditions for a potential bullish turnaround in Bitcoin’s market structure.
Following a significant drop on March 9, Bitcoin tested the resistance zone between $84,000 and $85,000 three times. This prompted traders to establish short positions prominently in this area. Data from liquidation heatmaps indicated over $300 million in short positions were concentrated here, which would be liquidated if Bitcoin surpasses the $85,000 threshold. Given the absence of downside liquidity below $77,000, the likelihood of Bitcoin moving towards higher liquidity levels has increased.
Additionally, an unfilled CME Bitcoin futures gap between $85,000 and $86,000 suggests potential future gains, as historical data shows a 100% fill rate for similar gaps over the last four months. If Bitcoin successfully transitions the resistance at $85,000 into support, the next formidable resistance could be at $90,000, leading to possible liquidations of over $1.6 billion in short positions and a potential rally towards the $95,000 level, reflecting a 12% jump from its current position.
Market analyst Mark Cullen noted a cautious outlook for Bitcoin, suggesting that price movements may continue to trend “correctively,” indicating potential sideways trading before significant upward shifts. In contrast, crypto analyst Valeria voiced concerns regarding possible short-term bearish signs at the $85,000 range, predicting Bitcoin could fall below $80,000 prior to any breakout.
Diverging trends between Coinbase and Binance spot trading have emerged, with Binance exhibiting aggressive selling patterns in recent days, particularly around local lows at $76,650. Conversely, Coinbase trading activity indicated persistent bids, enabling Bitcoin to rebound above $80,000. A similar dynamic occurred on March 12, as Binance traders sold at the $85,000 resistance while Coinbase buyers fortified the price at around $81,000.
Given the contrasting trading behaviors on these major exchanges, it is essential to establish more unified trading directions from both platforms for Bitcoin to gain the momentum necessary to breach the resistance levels of $85,000, $90,000, and ultimately $95,000 in the upcoming weeks.
In summary, Bitcoin’s price dynamics reveal a critical moment influenced by CPC data and liquidity structures. The ongoing resistance at $85,000 plays a pivotal role in determining future price movements, with bullish potential suggested if Bitcoin can surpass this level. Divergent trading activities between leading exchanges could affect the market’s momentum positively or negatively, indicating the need for coherent buying strategies to facilitate upward movement towards higher price targets.
Original Source: cointelegraph.com
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