Bitcoin Surpasses $110K Liquidity Zone, Setting Stage for $120K Rally

Bitcoin’s recent price movement has crossed a significant on-chain liquidity threshold, triggering heightened attention from market analysts. According to data from on-chain analytics firm CoinGlass, liquidity for Bitcoin is concentrated in the $109,500 to $110,000 range, a key area that BTC has now surpassed. As of the latest update, Bitcoin trades at $112,085, up 0.85% from earlier levels, signaling continued upward momentum. The break above this liquidity zone suggests potential accumulation from traders who are now looking beyond the current range for further price direction [1].

The next key resistance level for Bitcoin is at $115,000, which aligns closely with the daily 50-day Simple Moving Average (SMA). Technical indicators on the hourly chart show the formation of a bullish inverse head-and-shoulders pattern, a classic reversal pattern that could push prices toward $120,000 if confirmed. On the derivatives front, data indicates that if BTC moves toward $117,000, it could trigger the liquidation of short positions worth over $3.35 billion. This level is considered critical as it may create a self-reinforcing upward spiral due to forced buying from traders forced to cover their short positions [2].

Meanwhile, macroeconomic factors are also on traders’ radar. Upcoming U.S. inflation data, including producer and consumer inflation reports, could influence Bitcoin’s trajectory. These reports are typically seen as catalysts for broader market sentiment, and their outcomes may impact risk appetite for volatile assets like cryptocurrencies. In a separate development, South African firm Altvest Capital Ltd. is preparing to raise $210 million to establish a Bitcoin treasury, capitalizing on the digital asset’s 95% gain over the past year [1].

Corporate adoption of Bitcoin is also gaining traction. Metaplanet recently acquired 136 BTC for $15.2 million, bringing its total Bitcoin holdings to 20,136 BTC valued at nearly $2.08 billion. The company has achieved a year-to-date yield of 487% as of September 2025, underscoring the growing institutional confidence in Bitcoin’s long-term value [1].

Despite these bullish developments, the market has experienced notable selling pressure in recent months. Whale activity has seen a significant outflow of 114,920 BTC, worth approximately $12.7 billion, over the past 30 days. However, Bitcoin has managed to hold key support levels, indicating strong resilience in the face of bearish forces. Analysts have noted that while short-term selling remains a concern, the broader price structure has held firm, supporting a potential continuation of the bullish trend [2].

The combination of strong technical indicators, macroeconomic factors, and growing institutional interest in Bitcoin creates a mixed yet cautiously optimistic outlook. Derivatives data and on-chain activity both highlight the significance of the $115,000 level, which, if breached, could trigger a cascade of short liquidations and further fuel a rally. As the market navigates these dynamics, traders are closely watching for signs of sustained momentum or potential corrections in the coming weeks.

Source:

[1] Bitcoin (BTC) Breaks Past Major Liquidity Zone (https://u.today/bitcoin-btc-breaks-past-major-liquidity-zone-115000-imminent)

[2] Bitcoin Price Prediction: BTC Stabilizes Above $111000 (https://icobench.com/news/bitcoin-price-prediction-btc-stabilizes-above-111000/)