Bitcoin Traders Anticipate Potential Short Squeeze Amid Predictions of Price Surge Towards $120,000

• Bitcoin has reached new August highs, with traders seeing significant liquidations of short positions.

• Analysts predict a potential retracement could lead BTC to $120,000.

• A CME gap at $116,500 is being closely monitored as a possible local low.

Bitcoin traders are buzzing over a potential short squeeze, with price predictions hinting at a rise to $120,000. Stay updated!

What is Driving the Anticipation for a Bitcoin Short Squeeze?

The excitement among Bitcoin traders stems from the recent price movements and the potential for a short squeeze. As BTC approaches $120,000, many believe that a significant upward move could trigger massive liquidations of short positions.

How Could BTC Reach New All-Time Highs?

Market analysts suggest that if Bitcoin continues its upward trajectory, it could reclaim support levels around $117,200. This would set the stage for a potential rally towards new all-time highs, especially as liquidity conditions appear favorable.

Frequently Asked Questions

What are the implications of a Bitcoin short squeeze?

A Bitcoin short squeeze can lead to rapid price increases, creating volatility in the market and potentially attracting more investors.

How does the CME gap affect Bitcoin’s price?

The CME gap refers to price levels in Bitcoin futures that can influence market behavior. Traders often watch these gaps, as they can indicate potential price reversals.

Key Takeaways

• Short Squeeze Potential: Bitcoin could see significant upward movement, potentially reaching $120,000.
• CME Gap Awareness: The gap at $116,500 is crucial for traders to watch.
• Market Sentiment: Optimism is high among traders as BTC approaches new highs.

Conclusion

As Bitcoin nears critical price levels, traders are optimistic about a potential short squeeze that could propel BTC to new heights. Keeping an eye on market trends and CME gaps will be essential for navigating this volatile landscape.

Bitcoin traders are getting excited over a huge short squeeze as BTC price predictions include a return to all-time highs.

Key points:

• Bitcoin tags new August highs as traders see BTC shorts getting punished.

• An early retracement could well turn into a trip to $120,000, predictions say.

• A CME gap at $116,500 is of interest as a possible next local low.

Bitcoin (BTC) neared $119,000 into Sunday’s “decisive” weekly close as traders expected a strong week.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

Bitcoin traders brace for giant short squeeze

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching $118,760 on Bitstamp, marking new August highs.

“Out-of-hours” weekend trading saw heightened liquidations, with the 24-hour crypto total at $350 million, per data from monitoring resource CoinGlass.

BTC liquidation heatmap. Source: CoinGlass

Commenting on market structure, crypto forecasts favored further progress into the new week.

“BTC is on the cusp of a reclaiming ~$117200 back into support,” popular trader and analyst Rekt Capital wrote in his latest X post about the weekly chart.

“Bitcoin is hours away from a decisive Weekly Close.”

BTC/USD one-week chart. Source: Rekt Capital/X

Popular trader BitBull said that while weekend price moves can typically reverse as TradFi markets reopen, there was hope for new all-time highs next.

“Just a 10% upward move will cause $18B+ in short liquidations and big money is probably watching it,” he suggested about liquidity conditions.

“My guess is that Monday could be a bit bearish with BTC retracing its weekend pump. After that, we could see a move above $120,000.”

BTC/USD two-week chart. Source: BitBull/X

An accompanying chart compared BTC/USD now to previous bull markets to support the breakout thesis.

Fellow trader Merlijn agreed on the $120,000 target based on a potential short squeeze.

$BTC’s next move: $120,000

The largest liquidity pool in weeks is sitting right above us.

If you’re short here… God help you.

SHORT SQUEEZE LOADING. pic.twitter.com/VXmExKH3jj

— Merlijn The Trader (@MerlijnTrader) August 10, 2025

BTC price CME gap at $116,500 on the radar

Considering where the next BTC price dip might reverse, meanwhile, crypto investor and entrepreneur Ted Pillows suggested that price action would continue to coincide with “gaps” in CME Group’s Bitcoin futures market.

“There’s a CME gap around $116.5K, which will most likely be filled,” he summarized in part of an X post.

“This week, BTC dropped $2K to fill last week’s CME Gap. After that, Bitcoin could rally towards a new ATH.”

BTC/USDT perpetual swaps 15-minute chart. Source: Ted Pillows/X

Trader Daan Crypto Trades nonetheless described the weekend’s moves as “choppy” rather than trending.

“Most focus is on $ETH breaking its cycle highs and alts making all kind of moves,” he argued, referring to the largest altcoin Ether (ETH), which hit multiyear highs.

“Would assume BTC takes the spotlight again for a bit the moment it breaks $120K+ and gets close to its own all-time high again.”

ETH/USD 1-week chart. Source: Cointelegraph/TradingView