The price of Bitcoin has increased by 3% after constant withdrawals since the end of January. The upper cryptocurrency managed to bounce over $ 80,000 after a brief drop below the beach on March 11.
Bitcoin Weekly Chart. Source: Cointelegraph / TradingView
After the consumer price index (IPC) of the United States (ICC) arrived lower than expected at 3.1% on March 12, the structure of the Bitcoin market now sees the possibility of a meticulous turnaround.
Bitcoin liquidity clusters at $ 84,000 – $ 85,000
After the Bitcoin (BTC) price fell on March 9, he rebounded to test the resistance area for general costs between $ 84,000 and $ 85,000 three times, stir up merchants to built short positions in this range aggressively.
The data from the thermal liquidation card suggested that more than $ 300 million in uncovered positions were stacked in this price region, which would be liquidated if the price exceeded the resistance of $ 85,000.
Bitcoin 1 week of thermal liquidation liquidation. Source: Coringlass
With a lack of downward liquidity less than $ 77,000, the probability of the BTC moving towards upward liquidity has increased. In addition, the triggering of liquidations greater than $ 85,000 could further supply the bullish momentum, allowing Bitcoin to form a higher level and to transform this level into a new support.
A Bitcoin term of CME of the previous weekend has also remained unparalleled between $ 85,000 and $ 86,000. With a record of 100% of six gaps completed in the past four months, this configuration has further increased the chances of overthrowing resistance to general costs to $ 85,000.
Bitcoin 4 hours. Source: Cointelegraph / TradingView
If this happens, the next major resistance is at $ 90,000, which could liquidate more than $ 1.6 billion in short positions for a retest of the resistance level of $ 95,000 above, that is to say a leap to 12% of the current price.
Related: Bitcoin must secure the weekly fence above $ 89,000 to confirm that the bottom has passed
Bitcoin analyst Mark Cullen underlined a similar perspective for Bitcoin, but warned that the price continues to move “correctly”, involving other lateral movements before a short pressure.
On the contrary, Valeria, cryptographic analyst and financed trader, said that BTC showed signs of distribution near the $ 85,000 range, which is a short term. The merchant pointed out that the BTC price could be less than $ 80,000 before a bullish break.
Coinbase, Binance diverges on the trends of command manuals
Spot traders on Binance have sold aggressively in recent days, according to AGGR data, with a highest sale pressure during local stockings at $ 76,650.
Conversely, the Coinbase Spot Buyers have placed offers here, leading to the rebound of the BTC over $ 80,000.
Binance, Coinbase Orderbooks. Source: AGGR.TRADE
On March 12, a similar difference was observed, Binance Spot traders sold near the resistance of $ 85,000, while Coinbase merchants defended the price at $ 81,000 during the first American negotiation session, avoiding more decline.
Related: Crypto Trading Volume Basps, Market Signaling Exhaust: Analysis
While Coinbase directed the BTC rally in the past, an opposite position between the two main exchanges could slow down the BTC momentum to move quickly through the resistance levels.
Thus, for Bitcoin to recover higher peaks at $ 85,000, $ 90,000 and $ 95,000 in the next two weeks, the point trading activity between the two major exchanges could require a more collective management.
This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
