Bitcoin News Today: Bitcoin Nears $120K as 10% Gain Could Trigger $18B Short Liquidations

Bitcoin is edging closer to a critical psychological level of $120,000, with analysts suggesting that a sustained breakout could eliminate immediate resistance and set the stage for further gains. Current price action has seen Bitcoin trade near $118,790, having rebounded from $112,000 earlier in the month. The market capitalization stands at $2.36 trillion, with daily trading volume at $60.15 billion, reflecting increased activity and interest among traders and investors [1].

CW8900, a crypto analyst, has highlighted that if Bitcoin can break through the sell wall at $120,000, it could face no further resistance in the near term. This level previously capped a rally in late July, followed by a period of consolidation before the recent recovery. The analyst emphasizes that a successful breakout would remove a key psychological barrier and likely trigger a continuation of the upward trend [1].

On-chain data supports a bullish setup, with strong supply and demand dynamics evident across multiple price zones. Bitcoin’s Z-Score currently stands at +1.5σ, indicating firm momentum without signs of overheating. The MVRV Z-Score is at 2.667, suggesting there is room for price appreciation before reaching peak risk levels. Additionally, the Stock-to-Flow ratio is at 154, signaling reduced supply pressure and reinforcing the structural strength of the current move [1].

Technical indicators also favor a breakout. A 10% increase from current levels could trigger over $18 billion in short liquidations, as concentrated bearish positions near the $118,500–$120,000 range face the risk of being wiped out. This could accelerate price action and drive Bitcoin toward new all-time highs [1]. Recent on-chain volume has grown in tandem with the price’s move toward $118,500, with intraday retests holding near the upper range. A daily close above $118,000 increases the probability of testing the $120,000 level in the short term [1].

Analysts point to several macroeconomic factors that could support a breakout. Cooling inflation, as reflected in upcoming CPI data, may encourage expectations of a Federal Reserve rate cut, historically favorable for Bitcoin. Together, these factors—along with strong technical structure and market positioning—create a favorable environment for a move above $120,000 [1].

Despite the bullish signals, the path to the critical resistance level is not without risk. A failure to hold above key support levels such as $115,724 and the 50-day SMA near $113,324 could lead to further consolidation or a pullback. Traders are closely watching these levels to determine whether the recent buying interest can maintain its momentum [1].

With the 2025 Bitcoin halving event expected to further tighten supply and reinforce scarcity, the current price action may be setting the stage for a significant upward move. As the market awaits a breakout above $120,000, the focus remains on macroeconomic developments, institutional demand, and the evolving regulatory landscape [5].

Sources:

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

[5] Infomarine.net: https://www.infomarine.net/en/insight/118-crypto-news/36672-bitcoin-btc-price-today-bitcoin-breaks-$117k%E2%80%94momentum-builds-toward-$120k.html