Bitcoin Price Breakout Above $90K Possible as Market Shifts

Key Points

• Bitcoin Price Breakout Above $90K Possible as Market Shifts
• ETF outflows and declining Open Interest signal easing liquidity pressure
• Long-term holders reducing selling, indicating bullish sentiment
• A breakout could push BTC to $95,761, but failure risks a drop to $80K

Bitcoin has been in a downward trend since mid-January, struggling to regain momentum. Despite concerns about further losses, market data suggests the possibility of a strong recovery.

A key factor in Bitcoin’s price action is the ongoing unwinding of the “cash-and-carry” trade. This occurs when traders profit from price differences between spot Bitcoin and futures contracts. As this trade unwinds, we’ve seen significant ETF outflows and a decline in Open Interest (OI) in CME Futures, hitting a 12-month low.

The Play: Position for Bitcoin’s ATH Breakout
Here’s how to play this setup:
Entry Point: Buy on a breakout above the current consolidation range (around 90,000 USD) with strong volume to confirm.

Targets: First stop at 130,000 USD (+55%), then 150,000 USD (+79%) as price…

— WhaleTrackr (@Whale_Trackr) March 19, 2025

Historically, such conditions precede a recovery. The recent slowdown in ETF outflows hints at decreasing liquidity pressure, which could lead to renewed investor accumulation. If this trend continues, it may provide the foundation for Bitcoin’s next bullish phase.

Bitcoin CME OI and Spot ETF Netflows. Source: Glassnode – Techtoken

Another bullish sign comes from Bitcoin’s Long-Term Holder (LTH) Binary Spending Indicator. This metric tracks when veteran investors start selling their BTC holdings. A slowdown in LTH spending suggests long-term investors are holding onto their assets rather than cashing out, signaling confidence in Bitcoin’s future price action.

If LTHs continue to hold, selling pressure on BTC could decrease, making it easier for the asset to reclaim higher price levels.

Bitcoin LTH Spending Binary Indicator. Source: Glassnode – Techtoken

Bitcoin Needs to Break Key Resistance at $89,800

Bitcoin is currently attempting to break out of a two-month-old descending wedge pattern. This technical setup typically signals a potential bullish reversal. The key level to watch is $89,800—if BTC successfully breaches this resistance, it could trigger a rally toward $95,761.

This breakout scenario aligns with the positive market signals, including easing liquidity pressure and strong long-term holder sentiment. A successful move above $90,000 could further boost investor confidence, pushing Bitcoin into a stronger uptrend.

Bitcoin Price Analysis. Source: TradingView – Techtoken

However, if BTC fails to break past $89,800, it could struggle to maintain support above $87,041. A drop below this level may send Bitcoin back toward $85,000 or even $80,000, delaying any potential recovery.

With market manipulation concerns rising and the impact of whale movements affecting BTC’s price action, traders remain cautious. Additionally, recent events like the Ross Token rug pull scandal have heightened volatility in the crypto market, making Bitcoin’s next move even more crucial.

#Bitcoin has #broken the #resistance #area and is now #trading #above it.

The #price #reacted #positively #following the #rate #cut #news, so let’s see if it can maintain above the $85,000 level.

The #next #major #resistance is $89,500-$90,000 area.

🚀#BTC#Binance#HODL pic.twitter.com/2aWR8jTUlO

— ℳ𝒶𝓇𝒾𝓊𝓈 – ℐℴ𝒶𝓃 𝒮ℯ𝓇ℯ𝓂ℯ𝓉 〽️ (@MariusSeremet) March 20, 2025

Can Bitcoin Maintain Its Long-Term Bullish Momentum?

One of the biggest factors influencing Bitcoin’s long-term trajectory is the increasing interest from institutional investors. Recently, MicroStrategy made headlines with its purchase of 130 more BTC, demonstrating continued confidence in Bitcoin’s future.

If similar accumulation trends continue, Bitcoin could maintain a strong foundation for future growth. However, short-term price swings remain a concern, especially with whales placing massive short positions that could lead to liquidations and price volatility.

For now, all eyes are on Bitcoin’s $89,800 resistance. If it manages to break above this level, a move to $95,761 seems likely. But if resistance holds strong, BTC could face another pullback, testing lower supports before attempting another breakout.