Bitcoin Short Squeeze Near $120K Spurs Bullish Momentum
Bitcoin surged to new August highs, reaching $118,760 on Bitstamp. Traders now eye a Bitcoin short squeeze. They highlight support at the CME futures gap around $116,500 and a weekly close above $117,200. A 10% rally could liquidate over $18B in BTC shorts, potentially driving Bitcoin to $120,000. Last weekend’s moves triggered about $350M in liquidations, boosting bullish sentiment. Analysts like Rekt Capital, BitBull, Merlijn and Ted Pillows point to large liquidity pools above current levels. They expect a gap fill at $116,500 before further upside. Minor retracements may occur when traditional markets reopen. But the Bitcoin short squeeze remains the central theme. Traders also watch ether (ETH) after its multi-year highs.
Bullish
The anticipated Bitcoin short squeeze, driven by a key CME gap fill and reclaiming support above $117,200, signals significant short-covering pressure. Over $18B in potential liquidations and $350M recently triggered raise the likelihood of sharp upward moves to $120,000 in the short term. Analysts pointing to large liquidity pools above current levels further support bullish momentum. While minor retracements are possible when traditional markets reopen, the dominant effect is positive for Bitcoin’s price outlook. The focus on gap fills and liquidity suggests sustained buying interest, reinforcing both immediate rally potential and broader bullish sentiment for the coming week.