Bitcoin climbed 3% following the latest US Consumer Price Index (CPI) data, which came in lower than expected at 3.1% on March 12. The news sparked renewed optimism, pushing BTC above $80,000 after briefly dipping below this range.
With traders aggressively shorting Bitcoin between $84,000 and $85,000, a potential short squeeze could trigger further gains, propelling BTC toward higher price levels.
$85K Resistance Holds the Key
Bitcoin’s price action has tested the $84,000–$85,000 resistance zone multiple times since its March 9 decline. On-chain data suggests that over $300 million in short positions are clustered in this region. If BTC breaks above $85,000, these liquidations could fuel a strong upward move.
Moreover, an unfilled CME Bitcoin futures gap between $85,000 and $86,000 further strengthens the bullish case. Historically, BTC has closed all such gaps within four months, increasing the likelihood of a breakout.
Path to $95K: A 12% Rally in Sight?
If Bitcoin successfully flips $85,000 into support, the next major resistance lies at $90,000. A move past this level could trigger the liquidation of over $1.6 billion in short positions, potentially driving BTC toward the $95,000 mark—a 12% surge from current levels.
However, some analysts remain cautious. Mark Cullen suggests Bitcoin’s movement remains corrective, indicating possible sideways action before a breakout. On the other hand, crypto trader Valeria sees signs of distribution near $85,000, warning of a potential dip below $80,000 before an upward move.
Spot Trading Trends on Binance & Coinbase
Diverging order book trends between Binance and Coinbase could impact Bitcoin’s momentum. While Binance traders have been selling aggressively, Coinbase buyers have defended BTC at key levels, preventing further downside.
For Bitcoin to reclaim $95,000, a more unified direction in spot trading across these major exchanges might be necessary. Until then, BTC’s trajectory remains a tug-of-war between bulls and bears.
Will Bitcoin surge past $95,000, or is another correction looming? The next few weeks will be critical in determining the market’s direction.
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