Bitcoin on Track for a 12% Rebound ?
Despite recent declines, Bitcoin now appears to be poised for a rebound. Following the release of lower-than-expected US Consumer Price Index (CPI) on March 12, the BTC market structure hints at the possibility of a swift upward reversal.
Indeed, over $300 million worth of short positions have been accumulating in the resistance zone between $84,000 and $85,000. If the price of Bitcoin manages to break above this level, these positions will be liquidated, potentially fueling a 12% rally towards $95,000. Furthermore, an unfilled gap on CME futures contracts between $85,000 and $86,000 increases the likelihood of this level turning into support.
An Unexpected Divergence Between Binance and Coinbase
However, the dynamics between major exchanges could play a crucial role in Bitcoin’s ability to quickly break through these resistances. Data shows that traders on Binance have been selling in recent days, while those on Coinbase have been defending prices.
This divergence between the two largest exchanges could slow down the bullish momentum of BTC and prevent it from rapidly soaring towards $85,000, $90,000, and then $95,000. A more collective direction on both platforms would be necessary to ensure such a trajectory.
An Opportunity to Seize
Despite these nuances, the technical and fundamental context seems favourable for a Bitcoin rally in the coming weeks. With the prospect of massive liquidations, a favourable CPI, and a gap to fill, the cryptocurrency has all the right tools to surpass $95,000. It remains to be seen if the key market players will align to propel BTC to new heights.
