Will Bitcoin Hit $95K Before March Ends? Key Levels to Watch
Bitcoin rebounds above $80K as liquidity clusters and CPI data fuel bullish potential
Bitcoin’s price is back on the rise, gaining 3% after weeks of pullbacks since late January. The world’s leading cryptocurrency managed to reclaim the $80,000 level following a brief dip below it on March 11, signaling renewed bullish momentum.
A key driver behind this shift was the U.S. core Consumer Price Index (CPI) report on March 12, which showed a lower-than-expected inflation rate of 3.1%. This data has increased the chances of a short-term rally, potentially pushing Bitcoin toward new highs.
Bitcoin Faces Key Resistance at $85K
Following its March 9 decline, Bitcoin has repeatedly tested resistance between $84,000 and $85,000, prompting traders to aggressively open short positions in this range. According to liquidation heatmap data, over $300 million in short positions have accumulated at this level. If Bitcoin manages to break above $85,000, these short positions could be wiped out, triggering a liquidation cascade that fuels further upside movement.
Currently, there is minimal liquidity below $77,000, which reduces the probability of a major downturn. On the other hand, an unfilled CME Bitcoin futures gap between $85,000 and $86,000 strengthens the case for a breakout. Notably, all six previous gaps in the past four months have been filled, adding to the likelihood of Bitcoin flipping $85,000 into a new support level.
If this scenario plays out, Bitcoin’s next major resistance sits at $90,000. Breaking this barrier could liquidate over $1.6 billion in short positions, potentially pushing the price up to the $95,000 level—a 12% surge from its current price.
Analysts Split on Bitcoin’s Next Move
While many analysts remain optimistic, opinions on Bitcoin’s next move remain divided. Mark Cullen, a prominent Bitcoin analyst, suggests that the price action is still “corrective,” implying that sideways movement might continue before a potential short squeeze.
However, Valeria, a crypto analyst and funded trader, holds a more cautious view. She argues that Bitcoin is displaying signs of distribution near $85,000, a short-term bearish signal. According to her, BTC could dip below $80,000 before making a bullish breakout.
Diverging Trends on Binance and Coinbase
Spot trading data reveals a contrasting picture between major exchanges Binance and Coinbase. Over the past few days, Binance traders have been aggressively selling, with selling pressure peaking when Bitcoin hit local lows at $76,650. Meanwhile, Coinbase traders have been buying at key support levels, helping Bitcoin recover above $80,000.
A similar trend was observed on March 12, as Binance traders sold near $85,000 while Coinbase traders defended the price at $81,000. This divergence in trading behavior could slow Bitcoin’s ability to break through resistance levels decisively.
For Bitcoin to climb to $95,000 before the end of March, coordinated buying pressure from both exchanges may be necessary. If momentum shifts in favor of the bulls, a new all-time high could be within reach in the coming weeks.
