Bitcoin News Today: Bitcoin Eyes $130K As Bullish Momentum and Short Liquidation Risks Align

Bitcoin has been exhibiting a strong bullish structure in recent weeks, with price action reflecting consistent higher highs and higher lows within a well-defined ascending channel. The recent rebound from the $112K level has driven the price to a new all-time high near $123K, a zone that now represents a key supply area where profit-taking and distribution could temporarily stall the upward trend. Analysts suggest that a decisive break above this level could propel Bitcoin toward the $130K target [2].

On the 4-hour chart, Bitcoin’s bounce from the $112K flag support confirmed a bullish continuation pattern. The current tug-of-war at the $123K level suggests that sellers are countering strong demand, with potential for either a consolidation phase or a sharp continuation move. A rejection at this level could bring the price back to the $116K–$117K range, aligned with key Fibonacci retracement levels. A clean breakout, however, may trigger a short squeeze and accelerate the price toward higher resistance levels [2].

On-chain metrics also provide insight into the shifting market dynamics. Over the past several months, trading activity has transitioned from whale-dominated to increasingly retail-driven. While large clusters in late 2024 and early 2025 reflected whale inflows and strong bullish momentum, recent red clusters indicate a rise in smaller, retail-sized orders. This suggests that institutional or large buyers may currently be holding positions or waiting for more favorable entry points [3].

The potential for a bullish breakout above the prior all-time high remains strong, particularly as whale activity has diminished. This could allow for a sustained move toward $130K in the coming weeks, provided no renewed whale selling occurs to trigger a distribution phase [3].

Additionally, macroeconomic and institutional developments are reinforcing the bullish narrative. Bitcoin futures are currently valued at $79 billion, indicating a strong betting environment favoring the bulls. Institutional demand has also increased, with legislative changes in El Salvador expected to facilitate further adoption of Bitcoin among institutional investors. These developments contribute to a growing perception of Bitcoin as a legitimate asset class [1].

A key structural trigger lies in the short liquidation risk at $130K, where approximately $18.5 billion in BTC short positions could be liquidated if the price reaches this level. This makes the zone a potential catalyst for a rapid price surge, especially if the market continues to absorb bullish macroeconomic tailwinds [3].

While some analysts forecast a possible $130K breakout this week, others, such as Capriole Investments, suggest a longer-term target of $167,800 based on the concept of "energy value." These projections should be treated as analyst forecasts, not as guarantees of market performance. Traders are advised to monitor both technical and fundamental developments before making investment decisions [5].

Meanwhile, investor interest in layer-2 solutions and alternative cryptocurrencies has also increased, as these assets are seen as complementary to Bitcoin’s broader utility and scalability goals. This diversification trend reflects a broader appetite for exposure to the crypto market and opportunities for higher yield returns [1].

Source:

[1] https://icobench.com/news/bitcoin-price-prediction-sparks-altcoin-investment-bitcoin-hyper-is-leading/

[2] https://cryptonews.com/news/bitcoin-price-prediction-el-salvadors-new-law-fuels-institutional-demand-whats-the-btc-outlook/

[3] https://blockchain.news/flashnews/crypto-rover-says-18-5b-in-btc-short-liquidations-at-130k-level-key-trading-triggers

[4] https://cryptorank.io/news/feed/134cd-bitcoin-price-prediction-79-billion-futures-bet-signals-incoming-explosion-wall-street-prepping-for-200000-btc

[5] https://cryptonews.com/tags/bitcoin/