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!

Price Level Potential Liquidations Market Sentiment
$120,000 $18B+ Optimistic

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.

0198942f 334c 75ba 905a 92ef3ff5fdf0
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.

0198942c a73e 748e 9d99 f26bde84da59
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.”

01989428 3659 75e4 9160 a6d0a9976421
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.”

01989428 b85d 7384 a201 6649e9601eb0
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.”

01989429 a8fc 79be 9d83 83bd2a188bd2
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.”

0198942b 572b 7aad a25d 245e719f99f8
ETH/USD 1-week chart. Source: Cointelegraph/TradingView
Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

WLFI Hits $0.2427 on First Day After Eric Trump Retweet; Network Trading Volume Exceeds $2.8B

COINOTAG reported on September 2 that Eric Trump retweeted...

Bitcoin Retraces 12% Since ATH — CryptoQuant’s Darkfost Calls Dip Healthy and Within Bull Market Norms

According to COINOTAG News (September 2), CryptoQuant analyst Darkfost...

AndreIsBack Tops Ethena Leaderboard with 7.74M Unlocked WLFI ($1.85M) and $585K Gain on 3x Hyperliquid Short

Ethena Leaderboard participant AndreIsBack deployed 170 ETH (≈$580,000) eight...

lxuan.eth Longs 77.21 cbBTC in $8.51M Rebound Trade at $110,230 — Ai Auntie Notes $18K Unrealized Gain

COINOTAG News on September 2 cited on‑chain analyst Ai...

$U added to Binance alpha projects

$U added to Binance alpha projects
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img