Once the price breaks above $110,000, Bitcoin will be ready to 'evaporate'. A Bitcoin trader stated that if BTC bulls successfully liquidate $3 billion in short positions, 'price discovery' will be 'within reach'. If Bitcoin closes above $102,400 at the end of the month, it will set a record for the highest monthly close in history, proving that the bull market is still rapidly advancing.

More than $3 billion in Bitcoin short positions exist above $107,000, which will create a 'liquidation magnet' that could push BTC prices to new highs.

Bitcoin

BTC

$106,489

11 days away from setting a record for the highest monthly close in history. Following a weekly close record of $106,407 on May 18, BTC's closing price this month has surpassed $102,400, potentially setting a new monthly high. As cryptocurrency trader Jelle pointed out, given the current market trend, Bitcoin is just a step away from the 'price discovery' phase.

Price discovery here refers to the process of interaction between buyers and sellers in undefined or untraded ranges to determine the market price of an asset.

Breaking through Bitcoin's historical high of $110,000 will initiate the price discovery phase, pushing Bitcoin into an unknown trading range, continually setting new highs until market participants establish a new balance between supply and demand.

Cointelegraph reported that Bitcoin's daily chart is about to confirm a 'golden cross', which historically typically signals a price increase of 45% to 60%. This trend aligns with the possibility of Bitcoin setting new highs this month.

If the monthly closing price approaches $110,000, it would imply that Bitcoin will rise 15% to 17% in May, marking the strongest performance for May since 2019. This would greatly exceed the historical average monthly return rate of 8% for that month. Bitcoin researcher Axel Adler Jr. pointed out a key technical pattern in Bitcoin's current bull market cycle, noting that three 'compression' phenomena—periods of tightening price ranges—have recently occurred, measured by the highest/lowest prices rolling over within 180 days.

Charts show that this compression typically signals an imminent breakout, as evidenced by Bitcoin's surge from $1,000 to $20,000 in 2017, which set a historical precedent.