Bitcoin Price News: Whale Buying Could Push BTC Back to $85K

Bitcoin (BTC) has gone up by nearly 6% in the past week and surged past the $75,000 at some point yesterday as market sentiment continues to improve ahead of the Fed’s interest rate decision this week.

The market does not expect any surprises from this meeting, as the consensus opinion is that rates will stay unchanged for at least a couple of months.

Nonetheless, comments from the Chairman of the U.S. central bank, Jerome Powell, will be, as usual, thoroughly dissected.

Whales Buy $2.1Bn Worth of BTC in March

On-chain data from Santiment indicates that whales holding between 100 and 100,000 tokens have bought a total of 30,000 BTC during the first 16 days of this month. This means a $2.1 billion investment at a point when the selling pressure has clearly eased.

This kind of buying could create a strong floor in the short term that would support BTC’s recovery toward higher targets, possibly eyeing the $85,000 as the next stop.

Moreover, the latest spike in crypto prices managed to flush out another $290 million worth of short positions. Even though the needle has not moved much in terms of gains, bears seem to be getting increasingly squeezed out of their trades.

Bitcoin ETFs Bring In Nearly $1 Billion in Less Than a Week

In a heavily one-sided market like this, even the tiniest movements can result in a significant spike in volatility. In the past 7 days alone, short liquidations have exceeded the $1 billion mark, setting the stage for the beginning of a relief rally.

Moreover, Bitcoin just broke past a key resistance at $73,000 that is being retested during the American session today. If the price manages to stay above this mark, we could see a resumption of this week’s rally toward much higher levels.

Bitcoin exchange-traded funds (ETFs) notched their 6th consecutive day of positive net inflows, bringing in a total of $963 million during this period, which is also a reflection of growing buying pressure.

Meanwhile, market sentiment swiftly moved to Neutral territory according to CoinMarketCap’s Fear and Greed Index. This sentiment gauge has recovered out of “Extreme Fear” territory and a record low of 5 in just a month, indicating a shift in investors’ attitude toward cryptos.

Bitcoin Breaks Key Resistance and Could Rise By Another 16% Next

In a previous Bitcoin price prediction, we emphasized that a break above the $73,000 ceiling could provide an ideal entry for a long position at a point when BTC is clearly recovering, and buyers are coming back to the market.

The Relative Strength Index (RSI) in the 4-hour chart is already hovering near overbought territory, meaning that positive momentum has accelerated significantly.

Even though this increases the odds of a pullback in the short-term, it also shows that the direction of the prevailing price trend has shifted from bearish to bullish. We could now expect further price expansion toward $85,000 if this relief rally continues, meaning a 16.4% upside potential.

Moreover, BTC just broke above its 200-period exponential moving average (EMA) in this lower time frame. Although the most representative of these lines is the daily one, this could be an early indication of a change in the dominant trend as well.