By Chris Hollingworth 
Bitcoin’s price saw a 3% increase following a series of downturns experienced since the end of January. The leading cryptocurrency managed to bounce back above $80,000 after a brief dip below this range on March 11. The market sentiment for Bitcoin turned more positive after the US core Consumer Price Index (CPI) reported a lower-than-expected figure of 3.1% on March 12, potentially paving the way for a bullish reversal.
Following a price drop on March 9, Bitcoin’s price repeatedly tested the resistance zone between $84,000 and $85,000, leading traders to build significant short positions in this range. Data from liquidation heatmaps indicated that over $300 million in short positions were concentrated in this price region, set to be liquidated if the price broke above $85,000. With limited downside liquidity below $77,000, the likelihood of Bitcoin moving towards upside liquidity increased.
There is speculation that triggering liquidations above $85,000 could further boost bullish momentum, enabling Bitcoin to establish a higher high and potentially turn this level into a new support zone. Additionally, an unfilled CME Bitcoin futures gap between $85,000 and $86,000 from the previous weekend, coupled with a historical trend of such gaps being filled, increased the chances of the overhead resistance at $85,000 transforming into support.
If Bitcoin successfully breaks through these levels, the next significant resistance is anticipated around $90,000, which could lead to the liquidation of over $1.6 billion in short positions, potentially pushing the price towards a retest of the $95,000 resistance level, representing a 12% increase from the current price.
Bitcoin analysts have differing perspectives on the cryptocurrency’s near-term trajectory. While some foresee a bullish scenario unfolding, others caution about potential sideways movements or short-term bearishness. Traders on major exchanges like Binance and Coinbase have shown discrepancies in their order book trends, with each platform exhibiting varying buying and selling behaviors at key price levels, influencing Bitcoin’s price movements.
As Bitcoin aims to reclaim higher price levels in the coming weeks, the alignment of spot trading activities between major exchanges may play a crucial role in determining the pace of its upward momentum. While this article provides insights into recent market developments, it does not offer investment advice, emphasizing the importance of conducting individual research before making any financial decisions.
