BTC price nears $119,000 ahead of a decisive weekly close, with analysts predicting that a 10% move could trigger one of the largest short liquidations in months.
Bitcoin pushed to new August highs over the weekend, climbing to $118,760 on Bitstamp, as traders anticipated a potentially explosive week ahead. The move came during typically low-liquidity weekend trading, leading to heightened liquidation activity across the crypto market.
According to CoinGlass, over $350 million in positions were liquidated within 24 hours, with the majority involving over-leveraged short positions. Market watchers say that a sharp price rally from here could have dramatic consequences for bearish traders.
“Just a 10% upward move will cause $18B+ in short liquidations, and big money is probably watching it,” said popular trader BitBull.
Traders Eye $120K and CME Gap Levels
Technical analysts point to a critical price region just above $117,200, which Bitcoin appears to be reclaiming as support. Well-known market commentator Rekt Capital described the moment as pivotal:
“Bitcoin is hours away from a decisive Weekly Close.”
Beyond the immediate rally targets, a CME futures gap at $116,500 is drawing attention as a possible local low if prices retrace. Some analysts expect an early-week pullback as traditional finance markets reopen, but the overall sentiment remains bullish.
“My guess is that Monday could be a bit bearish with BTC retracing its weekend pump,” BitBull added. “After that, we could see a move above $120,000.”
The current rally comes as traders weigh macroeconomic uncertainty, including interest rate policy shifts and global risk sentiment. Still, the combination of technical support, short squeeze potential, and bullish momentum has some analysts predicting a retest of all-time highs sooner than expected.
If the projected $18B short squeeze plays out, Bitcoin could see one of its most aggressive upward moves of 2025 — setting the stage for a volatile but potentially historic month in crypto markets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.