Bitcoin News Today: Bitcoin Nears $120,000 as $18 Billion Short Liquidations Loom

Bitcoin is approaching a critical price level as it edges closer to $120,000, raising concerns among traders about a potential short squeeze that could trigger nearly $18 billion in short liquidations on major centralized exchanges. This scenario, if realized, would mark one of the largest short squeezes in cryptocurrency history, significantly impacting Bitcoin's price and broader market dynamics. Institutional traders, large holders, and retail investors on platforms like Binance and Bitstamp are closely monitoring the situation, with some analysts suggesting that a 10% price increase could force a substantial number of short positions to be closed, further amplifying upward pressure on BTC [1].

The growing buying pressure is evident in Bitcoin’s current consolidation around $117,500, with technical indicators suggesting continued upward momentum. The $120,000 level has emerged as a critical threshold both psychologically and technically, with traders and analysts emphasizing its significance. Mitrade has noted that Bitcoin could continue its bullish trend toward $120,000 and potentially test the $123,186 monthly high [3]. In addition, the $119,000 resistance level is seen as a key near-term target, with increased buying activity expected once it is breached [2].

A weekly chart from the Bitcoin Talk forum highlights a stair-step upward trend within the $112,000–$117,000 range, with a break above $120,000 likely to trigger fear of missing out (FOMO) among investors [4]. This could drive further capital inflows and accelerate Bitcoin’s price toward the upper end of technical forecasts. Analyst Sophia has pointed to a near-term price target of $120,000 based on indicators such as the Bollinger Band upper range, with a potential move toward $130,000 by month-end [5].

The potential for a short squeeze not only reflects speculative activity but also signals growing institutional interest in the market. A successful move above $120,000 could trigger a chain reaction, forcing short sellers to cover their positions and further pushing the price higher. Historical data suggests that similar events have led to sharp price increases in the past, and the current market environment appears to mirror those conditions.

The convergence of technical indicators and market sentiment points to a pivotal moment for Bitcoin. While $120,000 remains a formidable barrier, the accumulation of bullish signals and increasing buying pressure suggest that a breakout is becoming more likely. If the price action confirms this, it could mark the beginning of a new phase in Bitcoin’s price cycle and reshape market dynamics in the near term [2].

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Source:

[1] AInvest, [https://www.ainvest.com/news/bitcoin-news-today-bitcoin-120k-18b-short-liquidations-loom-10-price-gain-2508/](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-120k-18b-short-liquidations-loom-10-price-gain-2508/)

[2] Bitget, [https://www.bitget.com/news/detail/12560604905015](https://www.bitget.com/news/detail/12560604905015)

[3] Mitrade, [https://www.mitrade.com/insights/news/live-news/article-3-1026952-20250810](https://www.mitrade.com/insights/news/live-news/article-3-1026952-20250810)

[4] Bitcoin Talk, [https://bitcointalk.org/index.php?topic=5553474.0](https://bitcointalk.org/index.php?topic=5553474.0)

[5] btcc.com, [https://www.btcc.com/en-IN/square/Bitcoin%20News/773701](https://www.btcc.com/en-IN/square/Bitcoin%20News/773701)