Bitcoin attempts to clear short positions: The decline in CPI suggests a possible rebound of 12% in the coming weeks.

Recently, the core Consumer Price Index (CPI) in the USA dropped to 3.1%, which has rekindled interest in Bitcoin. If the price of Bitcoin can hold above a key resistance level, it could rise by 12%. After a slight increase of 3%, Bitcoin has successfully climbed back above $80,000, a psychological threshold for market participants.

Bitcoin is struggling at the resistance level of $84,500 to $85,000, forming an important liquidity cluster. Close attention should be paid to this Range. If the price of Bitcoin breaks through this barrier, more than $0.3 billion in short positions accumulated within this Range may lead to a large-scale liquidation. Once successfully broken, it will trigger a bullish trend that further drives prices up.

Data analysis shows a stark contrast in trading behavior between leading Exchanges such as Binance and Coinbase. Recent trends indicate that spot traders on Binance are more aggressive in selling at resistance points, while Coinbase users have remained defensive, buying to stabilize around the $81,000 price level.

This divergence in Order dynamics suggests that Bitcoin may experience volatility in the future. Historical trading patterns indicate that significant momentum often relies on collective participation from major Exchanges. Current circumstances suggest that unless both platforms present a unified trading direction, Bitcoin's upward momentum could slow.

In summary, the favorable CPI report has sparked a new wave of optimism in the Bitcoin market, providing traders with a significant opportunity to capitalize on potential short liquidations. However, the differing behaviors observed on Binance and Coinbase highlight the need for further coordination among trading entities to sustain upward momentum. As the market evolves, closely monitoring price trends and liquidity dynamics remains crucial for those looking to make progress in Bitcoin trading over the coming weeks.