Bitcoin (BTC) Navigates Turbulent Market Conditions, Poised for Surge with $120K in Sight

Bitcoin (BTC) is navigating through turbulent market conditions, facing a decline in value while fiercely defending its crucial $100,000 support level.

Bitcoin (BTC) price opened the new week with a 2.5% loss, navigating turbulent market conditions as it faces a crucial make-or-break point at the $100,000 support level. BTC price has come under bearish pressure in recent days, but the flagship cryptocurrency is putting up a fight to hold on.

Bitcoin price trades at $102,020 at the time of writing, down 2.49% over the past 24 hours. The flagship cryptocurrency has a market cap of $2.02 trillion. Its 24-hour trading volume has surged to $64.84 billion, reflecting heightened market activity amid the recent volatility.

Bitcoin Liquidation Event Signals Strong Upside Potential

Bitcoin liquidations amounted to $1.2 billion, a significant flush that can be concerning. However, such events often serve as healthy resets, eliminating overleveraged positions and creating a more stable foundation for future price action. The removal of speculative excess tends to pave the way for stronger, more sustainable rallies.

Bitcoin price 1-hour chart showing massive short liquidations. Source: BTC/USD on TradingView

As evidenced by the chart above, massive short liquidations are occurring on Binance. However, these liquidations are not clustered below key support levels but rather stacked above recent price highs.

This unusual setup suggests that liquidity is concentrated to the upside, increasing the probability of a short squeeze. In such scenarios, aggressive short sellers may be forced to cover their positions rapidly, leading to a swift price rally.

Bitcoin price poised for next surge with $120K in sight

From a technical analysis perspective, Bitcoin is forming an ascending triangle pattern on the 1-day chart, a structure typically associated with bullish continuation. For BTC to confirm an upward breakout, bulls need to decisively breach the critical $106,000 resistance level.

BTC/USD 1-day chart showing the ascending triangle pattern. Source: TradingView

If Bitcoin price manages to break out to the upside, we could see a sharp rally into the next major target zone around $120,000. With liquidity stacked above current price levels, bullish funding rates, and a potential short squeeze on the horizon, BTC appears poised for a decisive move.

Traders and investors are keeping a close eye on whether Bitcoin can maintain its support and overcome resistance to ignite the next leg of its bull run.

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