The cryptocurrency market buzzes with excitement as **Bitcoin price** shows significant upward momentum. Many investors and traders are closely watching the potential for a massive short squeeze. This could lead to substantial liquidations, potentially pushing the leading cryptocurrency to new highs. Such a scenario presents a compelling opportunity for those in business and entrepreneurship, as market shifts often create new avenues for growth and investment.
Bitcoin Price Surge Fuels Short Squeeze Predictions
Bitcoin (BTC) recently approached the $119,000 mark. This happened into Sunday’s crucial weekly close. Traders widely anticipated a strong week ahead. Data from StockPil Markets Pro and TradingView confirmed BTC/USD reaching $118,760 on Bitstamp. This marked new August highs for the asset. Consequently, “out-of-hours” weekend trading saw heightened liquidations. Monitoring resource CoinGlass reported the 24-hour crypto total at $350 million. The market structure, according to crypto forecasts, favors further progress into the new week. Popular trader and analyst Rekt Capital commented on the weekly chart. He stated, “BTC is on the cusp of reclaiming ~$117,200 back into support.” He further noted, “Bitcoin is hours away from a decisive Weekly Close.”
BTC/USD 1-hour chart. Source: StockPil/TradingVIew
Expert Analysis and Bitcoin Price Targets
Several prominent traders have shared their insights on the current **Bitcoin price** trajectory. BitBull, a popular trader, suggested optimism for new all-time highs. This comes despite typical weekend price reversals when traditional finance markets reopen. He emphasized the liquidity conditions. “Just a 10% upward move will cause $18B+ in short liquidations,” BitBull explained. He believes “big money is probably watching it.” He predicted a possible slight bearish retracement on Monday after the weekend pump. Afterward, he sees a potential move above $120,000. An accompanying chart supported this breakout thesis. It compared current BTC/USD trends to previous bull markets. Fellow trader Merlijn echoed the $120,000 target. This target is also based on a potential short squeeze. Merlijn warned, “The largest liquidity pool in weeks is sitting right above us. If you’re short here… God help you. SHORT SQUEEZE LOADING.”
BTC liquidation heatmap. Source: CoinGlass
The sentiment among analysts suggests a significant upward movement. The potential for a **Bitcoin price** surge is evident. Many short positions could face immense pressure. This could trigger a cascade of liquidations. Such an event would further fuel the upward momentum. Consequently, traders are preparing for increased volatility. They are also looking for strategic entry and exit points. The market is showing signs of strong bullish conviction. This could lead to a rapid ascent.
BTC/USD one-week chart. Source: Rekt Capital/X
Understanding CME Gaps and Bitcoin Price Movements
Investors often consider CME Group’s Bitcoin futures market for potential price reversals. Crypto investor and entrepreneur Ted Pillows highlighted a significant point. He suggested that price action often aligns with “gaps” in this market. “There’s a CME gap around $116.5K, which will most likely be filled,” he summarized in an X post. He noted a recent example. This week, BTC dropped $2K to fill last week’s CME Gap. After that, Bitcoin could rally towards a new ATH. Therefore, these gaps serve as important technical indicators. Traders use them to predict future **Bitcoin price** movements. Filling a gap often precedes a directional move. This makes them crucial for market analysis. The $116.5K level remains a key area of interest. It could act as a local low before a further rally.
BTC/USD two-week chart. Source: BitBull/X
Market Sentiment and Altcoin Influence on Bitcoin Price
Trader Daan Crypto Trades described the weekend’s moves as “choppy.” He noted that the market lacked a clear trend. He explained that focus primarily remained on Ether (ETH). ETH, the largest altcoin, recently hit multiyear highs. He argued, “Most focus is on $ETH breaking its cycle highs and alts making all kind of moves.” He believes Bitcoin will regain the spotlight. This will happen “the moment it breaks $120K+ and gets close to its own all time high again.” Therefore, altcoin performance can sometimes overshadow Bitcoin’s short-term movements. However, Bitcoin often leads the broader market. A decisive move from Bitcoin typically influences the entire crypto ecosystem. The $120K mark is crucial. It represents a psychological barrier. Breaking it could ignite significant interest in the **Bitcoin price** once more.
BTC/USDT perpetual swaps 15-minute chart. Source: Ted Pillows/X
Looking Ahead: The Path to New Bitcoin Price Highs
The cryptocurrency market remains dynamic and unpredictable. Nevertheless, current indicators point to a strong bullish outlook for **Bitcoin price**. The potential for a massive short squeeze looms large. This could propel Bitcoin towards and beyond the $120,000 target. Traders and analysts are closely monitoring key levels and indicators. These include CME gaps and liquidation heatmaps. The market is bracing for increased volatility. Ultimately, the coming days will be decisive. They will reveal if Bitcoin can achieve these ambitious price targets. Investors should conduct thorough research. Every investment and trading move involves risk. Readers must make informed decisions. This article does not provide investment advice or recommendations.
ETH/USD 1-week chart. Source: StockPil/TradingView
Frequently Asked Questions (FAQs)
Q1: What is a Bitcoin short squeeze?
A Bitcoin short squeeze occurs when the price of Bitcoin rapidly increases. This forces traders who bet against Bitcoin (short sellers) to buy it back to cover their positions. This buying further drives the price up, creating a cascading effect.
Q2: How much could Bitcoin liquidate with a 10% price gain?
According to market analysis, a 10% upward move in Bitcoin’s price could trigger over $18 billion in short liquidations. This massive liquidation event could further accelerate the price rally.
Q3: What is the significance of the $120,000 Bitcoin price target?
The $120,000 target represents a significant psychological and technical level for many traders. Breaking this level would indicate strong bullish momentum and could pave the way for Bitcoin to challenge its previous all-time highs.
Q4: What are CME gaps in relation to Bitcoin price?
CME gaps refer to price differences between the closing price of CME Bitcoin futures on Friday and the opening price on Monday. Traders often believe these gaps tend to “fill,” meaning the price will eventually move to cover that difference. This makes them important technical indicators for Bitcoin price movements.
Q5: How do altcoins like Ethereum influence Bitcoin’s market spotlight?
While altcoins like Ethereum (ETH) can capture market attention with their own rallies, Bitcoin often takes the lead when it approaches significant milestones or all-time highs. Its performance typically dictates the overall market sentiment and direction.
