Bitcoin News Today: Bitcoin Near $120K As $18B Short Liquidations Loom With 10% Price Gain

Bitcoin is drawing significant attention from traders as it inches closer to a potential short squeeze scenario. A 10% price increase in BTC could trigger over $18 billion in short liquidations, according to trader BitBull, who emphasized that large institutional players are closely watching the unfolding dynamics [4]. The cryptocurrency hit a new August high of $118,760 on Bitstamp, based on data from Cointelegraph Markets Pro and TradingView [1], while weekend trading saw $350 million in total crypto liquidations over 24 hours, as reported by CoinGlass [2].

The recent price action has been characterized by intense short-term volatility, with analysts noting the possibility of a decisive weekly close for Bitcoin. Prominent trader and analyst Rekt Capital highlighted on X that “BTC is on the cusp of reclaiming ~$117,200 back into support,” suggesting the market is approaching a key turning point [3]. BitBull also speculated that a retracement on Monday might occur before a potential push above $120,000 [5].

Merlijn The Trader echoed the $120,000 price target, warning that the largest liquidity pool in weeks is just above Bitcoin’s current level. He posted a chart on X stating, “If you’re short here… God help you,” underscoring the growing risk for short-position holders [6]. Meanwhile, Ted Pillows noted that a CME Group Bitcoin futures gap at $116,500 could soon be filled, with Bitcoin potentially rallying to a new all-time high after that level is reached [7].

Despite the bullish sentiment, some traders remain cautious. Daan Crypto Trades described the recent price movements as “choppy,” noting that attention has shifted to Ethereum and altcoins due to their recent multiyear highs. However, he expects Bitcoin to regain the spotlight once it breaks $120,000 and nears its own historical peak [8].

The combination of large short exposure, key technical levels, and growing institutional interest has positioned Bitcoin at a pivotal moment. While short-term volatility remains a possibility, the broader market outlook remains optimistic, with traders and analysts closely monitoring the unfolding price action for confirmation of the next major move.

Source:

[1] Cointelegraph (https://cointelegraph.com/news/bitcoin-can-liquidate-18b-with-10-price-gain-traders-see-120k-next)

[3] Rekt Capital/X

[4] BitBull/X

[5] BitBull/X

[6] Merlijn The Trader/X

[7] Ted Pillows/X

[8] Daan Crypto Trades/X