Bitcoin (BTC) broke above the $110K resistance level, a hurdle that it had tried, tested, but never broken above since late May of this year. It reached its all-time high of $118K courtesy of institutional adoption, increased ETF filings, and a pro-crypto-friendly U.S. government. At one point in February, when the reciprocal tariffs war was ongoing, many analysts suspected whether there would be an all-time high coming soon. However, at the time of publication, BTC has printed a new all-time high as it trades at $118.24K, after gaining almost 7% within the last 24 hours.
With the rise of BTC prices, short sellers had their positions liquidated. Crypto analyst Miles Deutscher stated that bears were in disbelief as $833m in shorts were liquidated in the past 24 hours.
Bitcoin may close in on $120K but will it sustain?
During the Bitcoin’s phases of consolidation from mid-May to mid-June, BTC had bursts of price appreciation. However, these price spikes were limited to a maximum of 8.5% before the bears took control and stopped BTC from gaining any value further. As BTC is currently on the rise, this makes us wonder whether this price action would also be limited to 8.5% as at other times. In the event BTC reciprocates its previous spikes, it may hit $119.5K–a level the traders may want to watch out for. After touching $119.5K, the price may eventually fall, making lower highs and lower lows towards the $110K.
On the weekly chart, Bitcoin has formed an ascending triangle, which is a bullish signal. When a crypto breaks out from this pattern, it usually spikes by a large margin. However, in Bitcoin’s case, the dwindling volume doesn’t support the idea that there will be a strong breakout and continuing uptrend.
Meanwhile the Altcoin Season Index has crossed above the Bitcoin season and has reached 30. Based on the historic data, this could be start of the altcoins season, as traders would be taking profits at BTC new all time highs and thereafter, they may invest in other altcoins.
