Will Bitcoin (BTC) Reach the Psychological Level of $95,000?

Although Bitcoin is down 7% this week, it has climbed 3% since Wednesday following a favorable Consumer Price Index (CPI) report, which indicated that inflation was cooling

Although Bitcoin is down 7% this week, it has climbed 3% since Wednesday following a favorable Consumer Price Index (CPI) report, which indicated that inflation was cooling in the United States. The report has boosted the chances of BTC witnessing bullish moves after several days of trending down.

So, will Bitcoin reach the psychological level of $95,000 if it continues to recover? Let’s find out.

Liquidity Sits at $85,000

When Bitcoin fell to $79,000 on March 9th, it retested the $85,000 overhead resistance three times, encouraging traders to open short positions at that level. CoinGlass’ liquidation heatmap shows there are over $350 million worth of short positions at $85k. If BTC crosses that mark, most of these positions will likely be liquidated, thus fueling more bullish momentum.

Analysts are optimistic that BTC will cross $85,000 to fill the CME Bitcoin futures gap between $85,500 and $85,400, arguing that the coin has closed such gaps six times in the last four months. If that happens, $85k will be flipped into a vital support level (a higher low), increasing the possibility of a move to $90,000, where short positions worth at least $1.6 billion will be liquidated, pushing BTC to $95,000.

BTC Could Dip Further, Popular Bitcoiner Claims

While most analysts are predictably bullish after weeks of bearish moves, Mark Cullen, a well-known Bitcoiner, has warned that Bitcoin is still in the ‘correction phase’ and could continue seeing its price fall for a few more weeks before it reverses.

Similarly, crypto trader Valeria says BTC is in a ‘distribution phase,’ where the bears appear to have the upper hand. Hence, she anticipates another drop below $80k before any bullish move.

Analysts Discover a Divergence in Orderbook Trends on Two Leading Exchanges

Analysts at Agrr.Trade have noted an interesting trend on Binance and Coinbase. In their Friday report, they said that Binance spot traders have aggressively sold their Bitcoin this week, which has been pulling the coin lower. Conversely, spot traders on Coinbase have been buying Bitcoin, thus putting pressure on the coin to trend up.

While the US-based exchange has fueled a BTC price surge in the past, analysts say increased selling pressure on Binance could slow down bullish momentum, making it harder for the coin to cross major resistance levels.

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