Bitcoin Surges 7% to $85,000, Eyes $91,500 Liquidation Zone

Bitcoin has surged past the $85,000 mark, capturing the attention of market observers who are now focusing on the next significant price movements. After a volatile drop to $74,000, Bitcoin has recovered by 7% over the past week, fueling new bullish expectations. However, analysts remain cautious about the prospects of a volatile market recovery. Traders are anticipating substantial price movements as Bitcoin has formed a rising wedge pattern, with liquidation risks increasing near $91,500.

Following the recent market crash, Bitcoin has reached new highs above $85,000. Analyst CrypNuevo identifies a prospective liquidation area for Bitcoin ranging from $90,000 to $91,500 as highly operational. Within this zone, Bitcoin’s short-term price movement could follow two distinct patterns due to the presence of several strong liquidation targets. CrypNuevo notes that the liquidation delta, currently balanced around $15 billion in long positions, is not yet extreme. A level of $25 billion or higher in positions should alert traders to increased price fluctuations. A price expansion in either direction may occur as daily and weekly 50-day EMAs converge relatively near $86,000.

Experts are monitoring technological trends that frequently recur over Bitcoin cycles. CrypNuevo mentioned the potential for a third retest, citing the market’s tendency to move in threes before a clear breakthrough or collapse. In this scenario, $81,000 is a crucial support level that could serve as a launching pad or a risk area. Cryptocurrency expert Ali Martinez added to this perspective by discussing a possible rising wedge formation, which is traditionally seen as a negative indication. If this formation materializes, Bitcoin may retest the $79,000 support, leading to pauses and further downward pressure.

Martinez also highlighted the critical zone of $82,024, where nearly 96,580 BTC were previously accumulated—this could act as a solid buffer zone if bulls begin to lose momentum. Both analysts emphasize that while BTC remains below its January all-time high of $109,000, the current market sentiment is cautiously optimistic.

Bitcoin price action is tightening, and traders are awaiting a decisive move. While a breakout toward the $90,000 – $91,500 liquidity zone is possible, analysts warn of a potential pullback due to the rising wedge formation and heavy liquidation pressures. Key support levels lie at $81,000 and $79,000 – if these hold, bulls may regain control and push higher. However, a break below could trigger a deeper correction before the next bullish phase. Market sentiment remains cautiously optimistic, with technical indicators suggesting that volatility is likely just around the corner.

Bitcoin’s current rally marks the beginning of what could be an intense and volatile month. With liquidity zones ahead and key support levels below, both bulls and bears have reasons to stay alert. Whether Bitcoin smashes through $90,000 or pulls back for a retest, one thing is certain – Bitcoin is once again at the center of market attention, and the next move could set the tone for the rest of the second quarter.