Bitcoin is fluctuating between $81,000 and $85,000 after a fall to $78k. Breaking the $85k resistance is crucial for continued upward momentum.
Market Analysis: Current Situation
Bitcoin is oscillating between $81,000 and $85,000 following a recent dip to $78k. For growth, it’s essential to break the $85k resistance and turn it into a support level.
Technical Analysis and Signs of Stability
Technical indicators suggest that if BTC cannot maintain $81,000 support, it may revisit $78,446. For upward momentum, BTC must reclaim $85,000. On March 17-18, BTC ETFs saw inflows, indicating a potential trend reversal. Long-term holders also bolstered positions, instilling confidence in future growth.
Potential Risks and Buying Necessity
Each BTC dip increases open interest, leading to liquidations and temporary drops. Despite efforts, seller pressure remains. Without strong institutional backing, a pullback to $80k is possible. Binance data shows low spot market volumes, with strong buying activity needed for $85k breakthrough.
To emerge from the current pattern, Bitcoin must break the $85k resistance and hold above it. This is imperative to avoid sharp corrections and sustain upward momentum.
