Bitcoin’s $118K Liquidation Surge: Is a New ATH Imminent?
Massive liquidations hit crypto markets as Bitcoin volatility spikes—traders face over $118K in forced closures.
Liquidation Cascade Explained
When leveraged positions get wiped out, it creates a domino effect. Markets shudder, then often rebound harder. Bitcoin's no stranger to this cycle.
ATH in Sight?
History shows liquidations often precede major price breakouts. With institutional money flooding in and traditional finance still trying to wrap its head around crypto, another run seems almost inevitable.
Just don't expect Wall Street to admit they're late to the party—again.
Bitcoin price key technical points
- $118,000 Resistance: Point of control of the current trading range since $100,000 was tested.
- Fibonacci Support: Bounce initiated from the 0.618 retracement, confirming bullish structure.
- Liquidation Cluster: Short liquidations stacked between $118,000 and $119,000 increase probability of a cascade.
The recent rebound from the 0.618 Fibonacci level has highlighted Bitcoin’s underlying strength. This retracement aligned with the reclaimed value area low, forming a technical foundation for continuation higher. Price is now testing the point of control at $118,000, a level that has concentrated volume and trading interest.
From a structural perspective, reclaiming the POC is crucial for continuation. If bulls succeed in closing above this level, Bitcoin would re-enter an area loaded with short positions, which could provide the fuel for acceleration.
The derivatives markets add another LAYER of importance to the $118,000 level. Liquidation heatmaps show a dense cluster of short liquidations beginning at $118,000 and extending toward $119,000. As more positions accumulate, the probability of a cascade increases if resistance is breached.
A short squeeze in this zone could propel bitcoin above the current trading range, potentially into new all-time-high territory. Such liquidation-driven moves often accelerate rapidly, as forced covering adds momentum to existing bullish flows. Sell-pressure indicators also point to a possible vertical accumulation phase as price progresses higher.
What to expect in the coming price action
Bitcoin is primed for a decisive move as it approaches $118,000. Holding below this level may prolong consolidation, but a confirmed breakout and close above WOULD likely trigger a liquidation cascade, accelerating the price into uncharted highs.
