Key Points

  • Bitcoin has just set a new historical high, with momentum indicators strongly cooperating. Currently, BTC has broken through the key short liquidity area of $123,000, and if it successfully breaks through, it is expected to challenge $125,000.

  • Bitcoin [BTC] has broken the $123,000 mark, refreshing historical highs, with intra-day gains reaching 4.6%. This marks the strongest wave of upward movement in this cycle.

How strong is it? Just a week ago, BTC was oscillating within a narrow range of $109,000 to $110,000. Now, it has surged nearly 12%, even surpassing the gains after the election when BTC peaked at $108,230 with a weekly increase of 11.12%.

From a technical perspective, momentum indicators are synchronously 'assisting':

The MACD remains strong and has not quickly weakened at high levels as it usually does;

The RSI is rising in sync with the price, indicating that this surge is not a house of cards.

The biggest difference from past top formations is: in the past, prices often reached new highs while indicators weakened (divergence), whereas now they are strengthening in sync. This difference is crucial.

Interestingly, as of now, according to Binance data, over 65% of accounts are still in a net short position, indicating that there is still a lot of skepticism and even short-selling sentiment in the market.

From an on-chain perspective, the Bitcoin 12-hour heatmap shows a liquidity pocket of approximately $52 million at $123,000. If the current technical and sentiment factors continue to misalign, it cannot be ruled out that BTC will 'sweep' this liquidity area.

Multiple factors resonate to support the rise

According to AMBCrypto analysis, this rise is not driven by 'emotional hype', but rather by three solid forces at work:

  • Continuous large inflows of ETF funds

  • Long-term holders' confidence remains unshaken

  • Shorts are continuously forced to cover their positions

Meanwhile, data from CryptoQuant shows that while market sentiment is in the 'greed' zone, it has not yet reached 'frenzy'—indicating that the market is not overheated and there is still room for further upward movement.

The current rise is not a 'hot potato' game but a structurally driven short squeeze of 'walking while eating'.

Therefore, the short liquidity cluster at $123,000 is becoming the next key point of market attention. Once broken, BTC is expected to push towards $125,000.

Considering the current technical trends and market sentiment, the probability of this situation occurring is gradually increasing.