Bitcoin’s price surged past $69,000 following the release of US CPI data indicating a decline in inflation, raising trader expectations for a Bitcoin recovery.

Highlights:

• Short-term relief rally depends on breaking resistance levels between $68,000-$70,000.
• Predictions suggest a potential short squeeze could push the price to $80,000 if support at $65,000 holds.

Market Analysis

Key Resistance at $68,000

Recent attempts to break out were thwarted at the $68,000 mark, as noted by analyst Daan Crypto Trades:

“That’s the area to watch if BTC wants to see another leg up at some point.”

The analysis shows a possible rally towards $72,000 if Bitcoin breaches the upper trendline.

BTC analysis

According to fellow analyst Ted Pillows:

“If Bitcoin reclaims the $70,000 level, it could rally 8%-10% really quickly.”

Examining technical charts, Bitcoin appears to be forming a V-shaped recovery. A break above $67,500 (20-period EMA) and $68,000 (200-week EMA) could aid in the recovery towards the $72,000 neckline.

Meanwhile, exchange data shows liquidity levels indicating potential risks near $80,000 and suggest a significant price movement if those levels are breached. Analysts have highlighted areas to watch for liquidations that may affect trading strategies.

This article doesn’t offer investment advice and all trading involves risks. Be sure to conduct personal research before making investment decisions.