A $120K liquidity cluster could ignite momentum if breached, with little resistance beyond.
Over $18B in short positions face liquidation risk above $125K.
Bullish flag pattern signals potential continuation of July’s rally.
Bitcoin is pressing against the $120K barrier, with heavy liquidity and $18B in shorts hanging overhead. A decisive break could ignite a rapid surge, unleashing a wave of liquidations and driving BTC toward fresh record highs.
$120K Emerges as the Key Magnet Level
Liquidity heatmaps from Coinglass data shared by Daan Crypto on X reveal two main battle zones,$115K support and $120K resistance. Since early July, prices have been repeatedly drawn to these areas. Above $122K, order depth drops sharply, leaving the path clearer toward $125K.
https://twitter.com/DaanCrypto/status/1953769385140613148
After surging from $104K to $117K between July 9 and 11, Bitcoin entered a choppy range. A breakdown below $115K on August 1 sent prices near $110K, where thick buy walls halted the slide. By August 3, buyers stepped in, driving a steady climb back toward $117K–$118K.
Traders now eye $120K as the breakout trigger. The level aligns with heavy resting sell orders and potential short stop-loss clusters, creating conditions for a sharp upside move if taken out.
Bullish Flag Keeps the Uptrend Alive
Analysis from Kamran Asghar shows BTC has been moving within a descending channel since mid-July. The pattern followed an impulsive rally from $107K to $120K and has since contained prices between $112K and $121K.
https://twitter.com/Karman_1s/status/1953789489660248327
Upper trendline touches have brought repeated rejections, while lower trendline tests near $112K have sparked quick rebounds. This steady bid support signals persistent accumulation. A clean break above both the channel and $120K could resume July’s rally, with momentum potentially carrying toward untested highs.
Billions in Shorts at Risk Above $125K
Another X user crypto the doggy highlighted that over $18 billion in short positions could be liquidated if Bitcoin hits $125K. Liquidation charts show a pivotal shift at $114,673—below it, long positions took the hit; above it, shorts are increasingly vulnerable.
https://twitter.com/cryptothedoggy/status/1953457247016702425
The heaviest short liquidation pressure sits between $116K and $123K. Binance records the most consistent volumes, while Bybit’s liquidation spikes peak above $121K. A push beyond $123K could trigger cascading liquidations, accelerating any breakout.
Bitcoin’s price is now between $115K support and $120K resistance. With liquidity walls, a bullish technical setup, and billions in shorts exposed, the next decisive move could be fast and forceful.
