Bitcoin (BTC) Defends $100K and Sets Sights on Bullish Breakout to $120K
- Bitcoin holds steady above the $100,000 support level despite a 2.49% decline, showing potential for a bullish reversal.
- A $1.2 billion liquidation event has cleared overleveraged positions, setting the stage for a possible upward rally.
- The ascending triangle pattern suggests a breakout above $106,000 could trigger a sharp move toward the $120,000 target.
Bitcoin (BTC) is navigating through turbulent market conditions, facing a decline in value while fiercely defending its crucial $100,000 support level. Despite recent bearish pressure, BTC has managed to hold firm, signaling potential resilience for a bullish comeback.
At the time of writing, Bitcoins price stands at $102,020, marking a 2.49% decrease over the past 24 hours. The flagship cryptocurrency boasts a market cap of $2.02 trillion. Its 24-hour trading volume has surged to $64.84 billion, reflecting heightened market activity amid the recent volatility.
Bitcoin Liquidation Event Signals Strong Upside
Bitcoin recently experienced a significant liquidation event, with $1.2 billion in open interest wiped out. While such flushes can be alarming, they often serve as healthy resets, eliminating overleveraged positions and creating a more stable foundation for future price action. The removal of speculative excess often paves the way for stronger, more sustainable rallies.
Despite the decline, Bitcoins funding rates remain bullish, suggesting strong underlying demand in the derivatives market. Interestingly, major liquidations are not clustered below key support levels but rather stacked above recent price highs.
This unusual setup indicates that liquidity is concentrated to the upside, increasing the likelihood of a short squeeze. In such scenarios, aggressive short sellers may be forced to cover their positions rapidly, driving prices higher in a swift rally.
Bitcoin Poised for Surge with $120K in Sight
From a technical analysis perspective, Bitcoin is forming an ascending triangle pattern on the daily chart, a structure typically associated with bullish continuation.
For BTC to confirm an upward breakout, bulls need to decisively breach the critical $106,000 resistance level. If successful, this breakout could trigger a sharp rally, with the next major target set at $120,000.
With liquidity stacked above current price levels, bullish funding rates, and a potential short squeeze on the horizon, Bitcoin appears poised for a decisive move. Traders and investors are closely monitoring whether BTC can maintain its support and overcome resistance to ignite the next leg of its bull run.
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Read more: https://www.tronweekly.com/bitcoin-btc-defends-100k-and-sets-sights-on-bullish-breakout-to-120k/
Text source: TronWeekly
