Key Insights:
- $7B in BTC shorts could trigger a squeeze if the price breaks above $90,000.
- Binance inflows surged $1.82B ahead of CPI and Trump’s tariff pause.
- Fear and Greed Index hit a record low, signaling extreme market uncertainty.
Bitcoin price has been nearing a critical inflection point. Nearly $7 Billion in short positions are at risk of liquidation around the $90,000 mark.
At the same time, macroeconomic shifts, crypto exchange flows, and technical patterns are converging to redefine the market’s near-term trajectory. Data from Coinglass shows a dense cluster of short liquidation leverage building between $86,900 and $90,000.
At levels near $82,000, BTC seems ready to prompt a “short squeeze.” This forced unwinding of bearish positions could intensify upward momentum.
Short Squeeze Watch: $7B in Liquidations Loom
Crypto Rover shared on X that $7 Billion worth of BTC shorts could be liquidated if Bitcoin price reach $90,000. The post included liquidation heatmaps indicating rising pressure on short sellers across Binance, OKX, and Bybit.
The current BTC price stood at $82,474, up 8.8% in 24 hours, according to CoinMarketCap. The rally coincides with President Donald Trump’s 90-day pause on reciprocal tariffs.
This excluded China from the suspension. China now faces a steep 125% tariff rate, further straining trade relations.
Ali Martinez noted that a breakout above $86,900 could trigger a move toward a potential market top near $208,550. He mentioned that Bitcoin price is breaking out of a channel. It could reach $87,000 if support at $80,700 is maintained.
Inflows to Binance Spike Before CPI Print
CryptoQuant data highlighted a steep increase in BTC inflows to Binance. Contributor Maarten Regterschot reported on April 9 that reserves rose by 22,106 BTC — worth $1.82 Billion — over the last 12 days. This pushed Binance’s total BTC holdings to 590,874 coins.
“This shows a strong acceleration in BTC inflows to Binance,” Regterschot said. He linked the trend to macro uncertainty and anticipation of CPI data.
CPI, Rates, and Trump Shift Stir Market Sentiment
The U.S. Bureau of Labor Statistics is set to release March’s Consumer Price Index (CPI) data on April 10. Per Matthew Hyland, analysts expect a month-over-month rise of 0.1%, with year-over-year inflation potentially falling to around 2.5%.
The March CPI reading exceeded expectations with a 3.1% figure. Investors are now keenly observing whether this positive trend will persist. At the same time, the Federal Reserve’s latest meeting minutes show concerns over stagflation and slowing growth.
The CME FedWatch Tool revealed a sharp decrease in the probability of interest rates falling below 4% by September 17. Within one day, this probability dropped from 97.6% to 69.7%.
Fed Chairman Jerome Powell stated that rate cuts might be paused. This decision allows the Fed to assess how trade policies influence the U.S. economy.
ETF Outflows, Fear Index Deepen Uncertainty
Despite Bitcoin’s resilience, exchange-traded products (ETPs) linked to BTC saw large net outflows. Farside Investors reported $104 million in outflows on Apr. 7 and $326.3 million the next day. CoinShares recorded $240 million in net outflows the previous week.
The Crypto Fear and Greed Index fell to 15 — its lowest level on record. This signaled extreme fear among investors.
Bitcoin price dropped 16.6% year-to-date, outperforming the S&P 500, down 14.2%. However, Ethereum (ETH) and Solana (SOL) have underperformed, with losses of 55.4% and 43.8% respectively.
Bitcoin Price Struggles Near Resistance as Volatility Lingers
BTC price has bounced off the $76,250 support zone several times over the past week. However, buyers showed hesitation. During the Asian trading hours, BTC briefly dipped below that level before recovering ahead of the U.S. session open.
That bounce, however, did little to calm the market. Roughly $460 Million in crypto positions were liquidated in the past 24 hours, with long traders taking the bigger hit.
Data showed that Bitcoin made up nearly a quarter of those losses, as sentiment remained mixed across significant exchanges. Bitcoin (BTC) price has yet to reclaim $80,400, a level now acting as immediate resistance.
If that ceiling holds, traders may see another leg down, possibly toward $74,400. There, the price found support earlier in the week.
BTC was trying to escape a downward channel. However, resistance remained untested at the 0.5 and 0.618 Fibonacci retracement levels—$85,462 and $87,615. The 50-week exponential moving average, now near $77,744, provides some support from below.
The RSI hovered around 55, while the MACD histogram showed fading bullish strength. The path forward looks uncertain until Bitcoin breaks above the recent highs or loses support below $74,400.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
