After weeks of fluctuations, Bitcoin (BTC) has gained ground again and is above $ 80,000. With a lower than expected American inflation (CPI) at 3.1% on March 12, the road seems free for a further increase. Can Bitcoin break the $ 95,000 limit for the end of March?
Liquidity clusters and short-liquidations
After the dip on March 9, Bitcoin tested the resistance between $ 84,000 and $ 86,000 several times. This level became a playing field for Short-Traders, which opened positions en masse in this region. Data from the liquidation heatmap show that more than $ 300 million in shorts is waiting to be liquidated if Bitcoin breaks out above $ 85,000.
Bron: Coinglass
With little support under $ 77,000, chances are that Bitcoin will look up the way sooner. A breakthrough above $ 85,000 can activate liquidations, generate extra purchasing pressure and possibly confirm an upward trend. In addition, there is an outstanding CME-Futures GAP between $ 85,000 and $ 86,000. Since all six gaps have been filled in the last four months, this can serve as an extra catalyst for an increase in $ 90,000.
Bron: Tradingview
Should Bitcoin break $ 85,000 and find support here, then the next big hurdle is the $ 90,000 limit. Above is a large concentration of short positions worth $ 1.6 billion. Bitcoin would give Bitcoin the chance to rise towards $ 95,000, an increase of approximately 12% from the current rate.
Yet the market remains careful. Analyst Mark Cullen indicates that the current movements are still corrective, which can indicate a consolidation phase before a real outbreak takes place.
Binance vs. Coinbase, struggle in the order book
An interesting dynamic is set between Binance and Coinbase. While Binance traders sell aggressively on resistance levels, Coinbase buyers support the price at local lows. This became visible around $ 76,650 and again at $ 81,000, where Coinbase traders held the course during the American session.
Bron: Aggr.trade
Bitcoin’s increase can slow this conflicting commercial activity between the two largest exchanges. For a real breakthrough to $ 90,000 and $ 95,000, collective purchasing power is needed, especially on the spot market.
Will be decisive in the coming weeks. The market structure points to a possible upward movement, but resistance levels and conflicting trading activity between Binance and Coinbase can temper Bitcoin’s speed. If the liquidity above $ 85,000 is used and speeding short-liquidations, a target of $ 95,000 is within reach.
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Source: https://newsbit.nl/bitcoin-op-weg-naar-95-000-marktliquiditeit-en-cpi-cijfers-voeden-optimisme/
