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Highlights
- Bitcoin surged 5% on March 5, rebounding to $87,000 after a 48-hour sell-off triggered by Trump’s tariff announcement on Monday.
- 17% of market liquidations were BTC long positions, signaling weak bullish conviction and potential risk of a pullback toward $83,500.
- Analyst Cole Garner spots a key order book depth signal, indicating Bitcoin could rally toward $92,000 or face a drop to $76,800.
Bitcoin (BTC) price is regaining its bullish momentum after surging by 5% in 24 hours to trade at $87,638 at press time. Despite these gains, the sentiment remains gloomy with the sentiment index showing traders are in a state of extreme fear. Moreover, several indicators suggest BTC could struggle to sustain the recent gains, hence the question: will Bitcoin price rally to $100,000 or drop to $70,000?
Bitcoin (BTC) Retakes $87,000 as Market Sell-Off Subsides
Bitcoin rebounded sharply on Wednesday, recovering from a turbulent 48-hour sell-off triggered by market fears as Trump announced commencement of 25% tariffs on US imports from Canada and Mexico.
Investors had withdrawn capital from risk assets following the former president’s announcement on Monday, leading BTC to slump to $82,000, its lowest level in over two weeks.
However, as broader market sentiment stabilized, Bitcoin swiftly reclaimed lost ground, surging 9% in the last eight hours to trade at $87,300 at press time.
The BTC/USD 4-hour chart reveals a strong relief rally, with price action bouncing off key support at $82,000 and reclaiming the critical $87,000 resistance level. The rapid move suggests aggressive short covering, as traders who had bet against Bitcoin unwind their positions.
However, spot market volumes remain moderate, indicating that fresh bullish momentum has yet to fully materialize.
Despite the recovery, BTC price remains vulnerable to renewed selling pressure if macroeconomic fears persist.
Failure to hold above $87,000 could see BTC retest support at $83,500, while a decisive breakout above $88,500 would position the market for a potential retest of the psychological $90,000 barrier. The next few sessions will be crucial in determining whether this rebound holds or fades into further volatility.
Bitcoin Long positions holders booked 74% of total market liquidations
While Bitcoin’s price rebounded 5% to reclaim the $87,000 level, liquidation data suggests that bullish momentum remains fragile.
According to Coinglass, Bitcoin long position holders absorbed $80M million in liquidations over the last 24 hours, accounting for 17% of the total $481 million liquidated across the crypto derivatives market. This disproportionate loss among bullish traders signals that the rally may lack strong conviction, increasing the risk of a trend reversal.
Typically, when long liquidations dominate the market, it indicates that bullish traders were overly leveraged. This leads to forced sell-offs that pressure prices lower. The BTCUSD 4-hour chart further supports this, showing a relief rally following a deep sell-off. However, strong buying activity was still lacking. This suggests that the recent price surge may be driven more by short-covering rather than fresh capital inflows.
If Bitcoin fails to consolidate above $87,000, bearish pressure could send prices back toward $83,500 in the coming sessions, with $82,000 as the next major support. However, if bulls can regain control and push BTC above $88,500, the next critical resistance lies at $90,000. This level could determine Bitcoin’s mid-term trajectory.
BTC Price Forecast: Analyst Cole Garner identifies Bitcoin Order Book Depth Pattern Signaling Next Big Move
Analyst Cole Garner identified another key Bitcoin price forecast signal alluding to long-term recovery timeline. As seen in the chart he posted on X on Tuesday, Bitcoin’s price action exhibits a strong correlation between deep bid-side liquidity and explosive rallies. This is common during accumulation phases.
The lower panel, tracking order book depth cumulative sum delta, shows a fresh surge in green bid-side liquidity, historically signaling smart money accumulation before breakouts.
This pattern has preceded major bullish runs, and if history repeats, Bitcoin could be on the verge of another expansion phase.
A sustained bid above $85,000 could trigger a breakout toward $92,000, with an extended rally toward the psychological $100,000 mark if liquidity absorption remains consistent.
However, despite the bullish setup, the chart also reveals a historical cyclical reversion.
Each liquidity spike was followed by a sharp contraction, marked by red sell-side dominance, triggering corrective retracements.
If Bitcoin fails to hold support at $81,500, order book imbalances could shift bearish. This will open the door for a pullback to $76,800. A deeper rejection below this level could expose liquidity gaps down to $72,500, risking further capitulation.
With Bitcoin hovering at a crucial inflection point, the market’s next move will be dictated by whether bid-side liquidity converts into price expansion or dries up, triggering a reversal.
Traders are watching order book dynamics closely, as smart money positioning suggests a major move is likely to happen.
Frequently Asked Questions (FAQs)
1. Why did Bitcoin drop to $82,000 before rebounding?
2. What key resistance and support levels should traders watch?
3. What does liquidation data suggest about Bitcoin’s rally?
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