Bitcoin (BTC) is showing signs of a potential breakout as it shifts from a prolonged consolidation phase to massive upside momentum on March 20, 2025. This surge in price comes on the heels of the Federal Reserve’s decision to hold interest rates steady during the March FOMC meeting, which has had a positive impact on the cryptocurrency market.
Technical analysis of Bitcoin indicates that the digital asset has broken through its previous resistance at the 200 Exponential Moving Average (EMA) on the daily timeframe. While the breakout is a positive sign, it is important to note that the rally is not yet fully confirmed. If Bitcoin manages to close a daily candle above the $85,800 mark, there is a strong possibility that it could surge by 8% to reach $92,600 in the near future.
Currently, Bitcoin is trading near $85,500, marking a significant increase of over 4.50% in the past 24 hours. The surge in price is accompanied by a 40% jump in trading volume, indicating increased participation from traders and investors following the bullish price action.
Traders are optimistic about Bitcoin’s future prospects, with on-chain analytics firm CoinGlass reporting major liquidation areas. At the $83,400 level, traders are heavily over-leveraged with nearly $920 million worth of long positions. Conversely, at the $86,300 level, traders betting on the short side have accumulated $375 million worth of short positions. These metrics, combined with technical analysis, suggest that bullish sentiment is prevailing and could propel Bitcoin towards reclaiming the $90,000 mark.
Overall, the current price action and market indicators point towards a bullish trend for Bitcoin, with the potential for further upside momentum in the coming days. As investors closely monitor the market dynamics, Bitcoin’s price movements will continue to be a key focus for traders and analysts alike.