- The price of BTC currently challenges the $85K-$86K resistance level; an ascending move would take it to $91K while a descending move would drive it down.
- Recent massive liquidations during late February demonstrated the risks that leveraged trading poses to Bitcoin price volatility.
- The upcoming trading periods become essential for Bitcoin price analysis because the RSI metric indicates an incoming overbought zone.
Currently, Bitcoin is trading around $83,501.63 reflecting a 0.5% gain.Experts believe the cryptocurrency pulled its liquidity back from its previous low positions indicating upward potential. Future price movements will be determined by the strong resistance found between $85,000 and $86,000. Bitcoin’s price will likely fall back if it cannot exceed this resistance area.
Bitcoin at Crossroads: Breakout or Pullback Ahead?
There are two possible scenarios if rejection occurs at this resistance. A market pullback after rejection at resistance must establish a higher low to maintain an upward market structure. A deeper retracement of Bitcoin might occur before it attempts its second ascent when it tests the $78,000-$80,000 support level.
The previously established support level at $78,000 proves powerful because it has served as double-bottom retest multiple times in the past yet can still drive new market buying pressure.
The RSI measurement indicates significant resistance which might generate brief selling pressure.Meanwhile, trading volume has increased near key price levels, indicating active market participation as traders position for the next major move.
Bitcoin Eyes Breakout: Key Levels to Watch
The present Bitcoin market position signals important upcoming price movements through either a breakout or rejection phase. Bitcoin will likely move toward $91,305 or beyond $91,305 if it manages to surpass the resistance level of $85,000-$86,000.
The price would return to $82,000 in case of resistance rejection while a potential decrease toward $78,000-$80,000 support could unfold in a bearish market environment.
BTC Liquidations Surge Amid Market Volatility
BTC Total Liquidations data shows that liquidation values spread from zero to $558.987 million but most events concentrated near $279.494 million. Late February experienced a significant price drop of BTC that pushed the balance of long liquidations towards the maximum limit.
The BTC price fluctuated throughout the period from $20,000 to $120,000 while it showed gradual growth until it reached levels between $90,000 and $100,000 in September and October but decreased to $80,000 in March. The BTC market displays remarkable volatility through substantial liquidations which happened during both mid-January and late February exposing the dangerous characteristics of leveraged trading.
