Bitcoin (BTC) saw a 3% recovery after a series of drawdowns since January, reclaiming the $80,000 mark. The rebound came after the US core Consumer Price Index (CPI) for March 12 was reported at 3.1%, lower than expected. This positive macroeconomic indicator has fueled speculation of a bullish turnaround, with traders now eyeing key liquidity zones.
$85K Resistance Holds the Key
Bitcoin’s price has repeatedly tested the $84,000-$85,000 resistance range, encouraging traders to build aggressive short positions. Data suggests over $300 million in short positions are stacked in this region, making it a critical liquidity cluster.
If BTC breaks above $85,000, these shorts could be liquidated, potentially triggering a rally. Additionally, an unfilled CME Bitcoin futures gap between $85,000 and $86,000 further strengthens the probability of BTC flipping this resistance into support.
Short Squeeze Could Propel Bitcoin to $95K
A successful breakout above $85,000 could push Bitcoin toward the next major resistance at $90,000, where another $1.6 billion in shorts are positioned. If liquidations continue, BTC could extend its rally to $95,000, marking a 12% surge from the current price.
However, crypto analyst Mark Cullen cautions that BTC’s movements remain “corrective,” signaling potential sideways action before a decisive breakout. Another expert, Valeria, warns of possible short-term distribution around the $85,000 zone, which could lead to a temporary dip below $80,000 before any strong upward move.
Diverging Exchange Order Books Could Slow Momentum
While Bitcoin’s momentum looks strong, exchange data paints a mixed picture. Binance spot traders have been aggressively selling near resistance levels, while Coinbase traders have been buying dips. This divergence could slow BTC’s ability to break through key resistance zones.
For Bitcoin to reclaim $85,000, $90,000, and eventually $95,000, market sentiment on both major exchanges will need to align. If spot buying pressure increases across platforms, BTC could be on track for a new all-time high.
