Bitcoin has reached the $85,000 mark thanks to positive economic and geopolitical factors. Market data shows both positive and limiting factors for the most popular cryptocurrency.
Factors Supporting Bitcoin’s Rise
Bitcoin continues its upward trajectory thanks to favorable news, which has sparked increased interest from investors. The U.S. Consumer Price Index (CPI) data exceeded expectations, driving up buyer demand. Additionally, Ukraine’s announcement of a 30-day temporary ceasefire, brokered by the U.S., has reduced uncertainty in the markets. This development has particularly contributed to recovery in the cryptocurrency sector. Another positive update came from Canada: the province of Ontario announced the removal of a 25% export tax on electricity to the U.S. This decision has positively influenced trade relations between the U.S. and Canada, creating a favorable atmosphere in the markets.
Critical Levels for Bitcoin’s Price
Market data indicates that over $75 million in positions were liquidated in the Bitcoin market in the last 24 hours. Of these, $15 million came from buyers, while $60 million originated from sellers. This reflects that short positions have incurred losses alongside Bitcoin’s rise. Meanwhile, the value of open positions has increased by 6%, reaching $49.8 billion. Bitcoin reached a peak of $85,309 during the day but encountered resistance at this level. Currently trading around $84,000, it has experienced a 5.3% increase in the last 24 hours. Technically, the resistance zone lies between $84,205 and $86,704. If Bitcoin surpasses the $90,000 threshold, the price could soar to $95,000. However, if buying interest wanes, the price may drop to $79,974.
Bitcoin Market Analysis
Moreover, the long/short ratio for the leading cryptocurrency has fallen to 0.67. This increase in selling pressure, along with the price rise, indicates that some traders expect a price decline.
The ongoing rise of Bitcoin is driven by a combination of economic and geopolitical factors. However, analysts warn of potential resistance levels that could affect the price movement further.
