Bitcoin Stays Bullish Despite Liquidations – Is $120,000 Within Reach?

The past week proved eventful for Bitcoin (BTC) holders after a historic price gain above $100,000 was accompanied by a flash crash of almost 7% pushing the asset’s price as low as $92,000 on early Friday. Fortunately, BTC has found some stability resulting in a gradual return into the $100,000 zone. Amidst this price recovery, some market indicators assure investors of Bitcoin’s robust bullish structure. Bitcoin Liquidations No Bearing On Long-Term Price But Consolidation Nears In a Quicktake post on CryptoQuant, an analyst with the username Percival shared certain market insights on Bitcoin’s future movement following the recent market loss. According to Percival, many traders had anticipated BTC reaching $100,000 as a key target, with further sights on $200,000. However, market volatility at $100,000 appeared “extremely hot” with funding rates notably hitting a temporary peak of 70%, prior to a decline to 15%. Amidst this chaos, long traders opened significantly large positions against a strong resistance level at $100,000 backed by high sell-side liquidity. Bitcoin’s sudden crash to below $93,000 triggered massive liquidation of these long positions resulting in a loss of $277 million. Following this bearish event, Percival notes that the BTC market weekly strength index is 28, signaling a weak bullish momentum and a need for price consolidation. However, on the monthly time frame, BTC remains in a strong position to maintain its bullish trend but will also require time for a recharge. In backing up these projections, the analyst also refers to the Choppiness Index (CI), a trading tool to measure if a market is trending or consolidating. A low CI as seen in the Bitcoin market suggests consolidation. Interestingly, Percival states that the 2020/2021 bull cycle experienced a consolidation phase of around 20 days and all price consolidations since March 2024 have also been within similar duration. However, the analyst lays emphasis on the positivity of this potential consolidation stating “The greater the consolidation, the greater the rise”. Bitcoin STH Realized Price Shows $120,000 Target In terms of future price targets for Bitcoin following consolidation, Percival explains that the realized price of short-term holders currently indicates future key resistance levels. First of these levels is the $110,000 price region which represents a resistance near +1.5 standard deviation above the realized price, making it a zone where many traders might take profit. If bullish pressure proves sufficient, BTC is expected to surge to $120,000 which presents a psychologically stronger resistance level and may require further consideration for a breakout. At the time of writing, Bitcoin continues to trade at $100,090 following a 3.02 % gain in the past day.