Bitcoin (BTC) has surged past $120,000 for the first time since August, and bears are already feeling the sting.
Short liquidations in the past three days in the crypto market have surpassed $700 million as the top crypto could soon make a new all-time high if bullish momentum continues.
The macroeconomic backdrop favored a move higher for cryptos, but the market decisively pulled back after the Federal Reserve cut rates by 25 basis points.
However, as most tokens hit critical support areas – e.g. BTC at $110K – the stage looks set for the next leg up of this cycle as analysts expect that another cut will take place this month.
In the past 7 days, BTC has advanced by 10.5%, bringing its year-to-date (YTD) gains to nearly 29%. Meanwhile, trading volumes in the past 24 hours have rocketed to $70 billion, now accounting for 3% of the asset’s circulating supply.
Another surprising metric that favors a bullish outlook comes from exchange-traded funds (ETFs) as spot products linked to Bitcoin have brought in $2.2 billion from Monday to Thursday.
Bitcoin ETF Inflows – Source: Farside Investors
As a result, the total assets under management (AUM) held in these funds have climbed to $59 billion as per data from Farside Investors.
It appears that institutional money is flowing to BTC at a point when the market could be entering a new stage of the cycle. This is entirely logical considering that lower rates push yield-chasers to riskier asset classes like cryptos.
In addition, the CME Group said this week that it will start supporting 24/7 crypto trading starting in 2026. Institutional traders will likely draft strategies to make the most out of this meaningful change in the market’s dynamics, and their presence throughout the day will likely result in higher liquidity.
Open interest in Bitcoin futures has also hit levels not seen since 2022 when expressed in BTC. This implies much higher participation and emphasizes the strength of this bull market.
In a previous Bitcoin price prediction, we emphasized that the token could rise to $145,000 if it broke out of the $125K level in the near term.
BTC/USD Daily Chart (Bitstamp) – Source: TradingView
The $110K area turned out to be a strong demand zone, which confirms the beginning of the token’s next leg up. However, how high could BTC go after this support bounce?
Looking at historical patterns, the top crypto has delivered gains between 20% and 28% after it has broken its latest swing highs.
Using this as a reference to estimate how high BTC could go this time, we get a similar target of $140,000 for BTC. This still leaves us with a 16% gain on the table.
The Relative Strength Index (RSI) has already sent a buy signal upon crossing the 14-day moving average. Hence, a confirmed breakout of this key resistance would mark the beginning of this next leg up.
Considering both the macro and technical outlook, we could witness a strong push to $140K for Bitcoin in the next few weeks.
Alejandro Arrieche specializes in drafting news articles that incorporate technical analysis for traders and possesses in-depth knowledge of value investing and fundamental analysis.