Bitcoin News Today: Bitcoin Near $120K As 10% Gain Could Trigger $18B Liquidations

Bitcoin is drawing renewed attention from traders amid growing expectations of a short squeeze that could result in $18 billion in liquidations if the price rises by just 10%. With the cryptocurrency reaching new August highs on major exchanges, market participants are closely watching for signs of a breakout toward $120,000 and beyond [1].

On Sunday, Bitcoin (BTC) traded as high as $118,760 on Bitstamp, pushing past previous resistance levels and triggering increased short liquidations. According to data from CoinGlass, over $350 million in crypto positions were liquidated within a 24-hour window, highlighting the intensity of the current market dynamics [1]. Analysts note that the price action suggests a potential reversal of bearish sentiment, with key support levels around $117,200 being tested [1].

Rekt Capital, a well-known crypto analyst, highlighted on X that Bitcoin is approaching a critical weekly close that could determine the direction of the price in the near term. The trader emphasized that the market is on the verge of reclaiming key support and that a strong close could solidify the bullish momentum [1].

BitBull, another prominent trader, shared similar optimism, forecasting a potential new all-time high in the near future. He noted that a 10% price increase could trigger massive short liquidations, drawing attention from institutional investors and large traders [1]. While he acknowledged the possibility of a bearish correction on Monday, he suggested that a retracement could set the stage for a rally beyond $120,000 [1].

Merlijn The Trader also aligned with the $120,000 target, emphasizing that the largest liquidity pool in weeks lies just above the current price. He warned short-position holders that the risk of a short squeeze is increasing and described the market as being in a “loading” phase [1].

Ted Pillows pointed to a potential price reversal level near $116,500, which corresponds to a gap in the CME Group’s Bitcoin futures market. He predicted that this level would likely be filled, providing further support for a bullish continuation after a temporary dip [1]. Pillows also noted that the recent drop of around $2,000 had already begun to fill the gap, reinforcing the likelihood of a move toward a new all-time high [1].

Despite the bullish forecasts, some traders, like Daan Crypto Trades, cautioned that the market remained choppy and not necessarily in a clear upward trend. He observed that attention had shifted to other assets, particularly Ethereum (ETH), which was breaking its own cycle highs. However, he expected Bitcoin to reclaim the spotlight once it approached $120,000 [1].

The overall sentiment among traders points to a high-stakes environment where a modest price increase could trigger significant market reactions. With key levels being tested and large short positions at risk, the coming weeks will be critical in determining whether Bitcoin continues its upward trajectory or faces a consolidation phase [1].

Source: [1] Bitcoin can liquidate $18B with 10% price gain as traders see $120K next (https://cointelegraph.com/news/bitcoin-can-liquidate-18b-with-10-price-gain-traders-see-120k-next)