Key takeaways:
Bitcoin increased by 5% to $117,300 after Federal Reserve Chair Jerome Powell indicated a possible interest rate cut, resulting in $379.88 million worth of short positions liquidated.
Analysts believe the BTC “uptrend is back,” with a chance to reach $200,000 by year’s end.
Bitcoin (BTC) surpassed the ask liquidity above $117,000 on Friday following comments from Federal Reserve Chair Jerome Powell about a potential interest rate cut in September during his Jackson Hole speech.
BTC’s price rose over 4% to a daily high of $117,300 on Bitstamp from a low of $111,600 over the past six weeks.
According to CoinGlass data, $379.88 million in short positions were liquidated, with Ether (ETH) contributing $193 million as it surged nearly 15% to $4,760. Bitcoin represented $56.4 million in short liquidations.
Related: Bitcoin ETFs experience a 5-day losing streak, but Pomp claims BTC is oversold
In total, $629.48 million was liquidated across short and long positions, as illustrated in the figure below.
The swift market recovery resulted in the liquidation of 150,217 traders, surprising many as investor sentiment shifted to bullish.
The Bitcoin liquidation heatmap revealed the price absorbing liquidity above $117,000, with over $259.5 million in ask orders located between $117,000 and $118,000.
Bitcoin analysts declare “uptrend is back”
BTC’s lows below $112,000 have offered traders an advantageous entry point, according to MN Capital Founder Michael van de Poppe.
Earlier this week, van de Poppe advised his followers on X to watch for a sweep below the August 3 low of $111,900 as a prime accumulation zone.
“A small sweep occurred, then an immediate substantial upward move on #Bitcoin,” he noted in a post on X, adding:
“Uptrend is back.”
Another analyst, Jelle highlighted that while the Bitcoin price might retrace following today’s rise, the consensus remains: “The market wants higher.”
This comes as several participants in the crypto industry have recently forecasted price increases in the sector. Analyst BitQuant stated on Monday that his target of $145,000 for Bitcoin remains attainable through 2025.
Additionally, Bitwise’s head of European research, André Dragosch, mentioned in Cointelegraph’s Chain Reaction daily X spaces on Monday that US President Donald Trump’s decision to allow cryptocurrencies in 401(k) retirement plans could drive Bitcoin to $200,000 by year-end.
This article does not constitute investment advice or recommendations. Every investment and trading decision carries risk, and readers should do their own research before proceeding.
