Cryptocurrency traders anticipate a major Bitcoin short squeeze that could propel prices toward $120,000, with market analysts identifying the $116,500 CME futures gap as a decisive technical level.
Over $18 billion in leveraged short positions face liquidation risks should the rally accelerate. Market participants view the CME gap at $116,500 – a price discrepancy from weekend futures trading – as a potential support zone and reversal trigger for BTC.
Bullish sentiment prevails as Bitcoin tests record highs, though weekend volatility triggered $350 million in market-wide liquidations. Traders are closely monitoring order book liquidity and price action for directional confirmation.
Some technical analysts suggest a brief pullback may occur before a decisive breakout beyond $120,000, noting similarities to historical bull market patterns. This potential retracement is viewed as a healthy consolidation that could strengthen the next upward move.