Key takeaways:
Bitcoin jumped 5% to $117,300 after Federal Reserve Chair Jerome Powell indicated a possible interest rate cut, resulting in the liquidation of $379.88 million in shorts.
Experts suggest the BTC “uptrend is back,” with the chance of reaching $200,000 by year-end.
Bitcoin (BTC) breached the ask liquidity above $117,000 on Friday after Federal Reserve Chair Jerome Powell suggested a potential interest rate cut in his Jackson Hole speech.
BTC’s price increased over 4% to a daily peak of $117,300 on Bitstamp, recovering from a six-week low of $111,600.
BTC/USD hourly chart. Source: Cointelegraph/TradingView
As per CoinGlass data, $379.88 million in short positions were liquidated, with Ether (ETH) responsible for $193 million as it surged nearly 15% to $4,760. Bitcoin followed with $56.4 million in short liquidations.
Related: Bitcoin ETFs face a 5-day losing streak, but Pomp claims BTC is oversold
Overall, $629.48 million was lost from the market in short and long positions, as depicted in the figure below.
Total crypto liquidations. Source: CoinGlass
The sudden market rebound led to the liquidation of 150,217 traders during the timeframe, surprising many as investor sentiment shifted to bullish.
The Bitcoin liquidation heatmap revealed that prices were consuming liquidity above $117,000, with over $259.5 million in ask orders positioned between $117,000 and $118,000.
Bitcoin liquidation heatmap. Source: CoinGlass
Bitcoin analysts affirm “uptrend is back”
BTC’s sweep below $112,000 offered traders a prime entry point, according to MN Capital Founder Michael van de Poppe.
Earlier in the week, van de Poppe advised his X followers to look for a sweep beneath the Aug. 3 low of $111,900 as a favorable accumulation zone.
“A small sweep occurred followed by an immediate significant move upward on #Bitcoin,” he noted in a Friday X post, adding:
“Uptrend is back.”BTC/USD four-hour chart. Source: Michael van de Poppe
Similarly, analyst Jelle suggested that Bitcoin’s price might pull back after today’s surge, yet one thing is certain: “The market wants higher.”
This follows several crypto market experts sharing optimistic price predictions recently. Analyst BitQuant mentioned on Monday that his target cycle top of $145,000 for Bitcoin remains achievable through 2025.
Additionally, Bitwise’s head of European research, André Dragosch, indicated on Cointelegraph’s Chain Reaction daily X spaces that U.S. President Donald Trump’s move to authorize crypto in 401(k) plans could propel Bitcoin to $200,000 by year-end.
This article does not offer investment advice or recommendations. All investments and trading decisions carry risk, and readers should conduct their own research before making any decisions.
