Bitcoin Surges 1.55% to $86,966.4375, Sparking Short Liquidations

Bitcoin's price has experienced significant fluctuations in recent days, with the cryptocurrency briefly dropping below $87,000. The price of Bitcoin was trading at $86,966.4375, marking a 1.55% increase over the past 24 hours. This price movement has sparked a wave of short liquidations, as bearish traders were forced to close their positions at a loss. The price surge toward $87,000 has ignited a wave of short liquidations, forcing bearish traders to close their positions at a loss.

The price of Bitcoin is currently trading at $86,500 on the 4-hour chart, just below the resistance zone near $87,000. If it breaks above this resistance, BTC could test the next resistance level. However, if the resistance level of $87,000 cannot be broken, profit-taking may occur, leading to a decline. On the other hand, if it can stabilize at this level, it could signal a bullish trend.

Bitcoin's price has been volatile, with significant swings in recent weeks. The market saw a quick rebound on March 6, with BTC climbing to $92,741. Another significant drop on March 9 pulled prices down to $80,701. The market has been under pressure due to various factors, including tariff wars and economic uncertainty. Analysts remain bullish for the long term, but some expect a short-term decline. According to the analyst's forecast, the current bear market should only last for 90 days, with a fall expected in the next 30 days followed by a 20-40% rally sometime after April 15th.

Bitcoin's resilience in the $80,000 range could set the stage for other cryptocurrencies to rally. Bitcoin bulls are trying to make a comeback by maintaining the price above the 200-day simple moving average. Analysts believe that Bitcoin needs to close above $85,000 this week to signal strength and prevent a drop to $76,000. A close above $87,000 would give a clearer bullish confirmation.

The market has been under pressure due to various factors, including tariff wars and economic uncertainty. Analysts believe that the markets may remain under pressure until April 2. If the tariffs get dropped, it could act as a significant driver for the market. However, if the price turns down from the 20-day EMA and breaks below $81,000, it suggests that the bulls have given up. That could sink the pair to $80,000 and subsequently to $76,606. Buyers are expected to defend the $76,606 level because a break below it may deepen the correction. There is strong support at $73,777, but if the level falls, the next stop could be $67,000.