Bitcoin surges 12% to $122,000 all-time high, defying past trends

Bitcoin has surged past $122,000, marking a fresh all-time high and showcasing an aggressive rally within the cycle. This move represents a significant jump from just a week ago when Bitcoin was trading within a narrow range of $109,000 to $110,000. The cryptocurrency has since surged nearly 12%, outpacing even the post-election breakout where it topped out at $108,230 with an 11.12% weekly gain.

Technical indicators support this bullish momentum. Unlike past highs where the Moving Average Convergence Divergence (MACD) flipped bearish shortly after the top, this time it is holding firm. Additionally, the Relative Strength Index (RSI) is grinding higher in tandem with the price, suggesting that the rally is not running on fumes. This technical divergence is significant because it indicates a shift from how past tops played out. At the time of writing, over 65% of accounts remain net short, reflecting persistent disbelief in the market.

The nearest short liquidity pocket is sitting at $123,317, with around $52 million stacked. If this technical divergence holds, Bitcoin could be setting up for a classic short-side liquidity sweep into that zone. This would mean that a decisive break above the $123,000 level could open the door for Bitcoin to target the $125,000 level next. Given the current technical setup and the underlying sentiment, this scenario appears increasingly likely.

The recent all-time highs are not just driven by hype but are backed by billions flowing into exchange-traded funds (ETFs), strong conviction among long-term holders, and a wave of short liquidations keeping momentum alive. The sentiment remains anchored in greed but has not yet tipped into mania, underscoring the technical divergence observed. This puts the $52 million short liquidity cluster around $123,000 firmly in focus, making the next liquidity target a critical point to watch.