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Key Insights:
- Bitcoin jumped above $117,000 after Powell signaled potential September rate cut.
- More than $629 million in crypto positions got liquidated amid quick recovery.
- Analysts see $118,000 breakout as confirmation of renewed Bitcoin uptrend.
Bitcoin surged above $117,000 Friday after Federal Reserve Chair Jerome Powell signaled a possible September interest-rate cut during his Jackson Hole speech. The move erased a six-week low of $111,600 and triggered over $629 million in crypto liquidations. Traders now eye an $118,000 breakout to confirm trend strength.
Short Squeeze Drives Market Action
Bitcoin rose more than 4 percent to an intraday high of $117,300 on Bitstamp, recovering sharply from $111,600. That advance coincided with Powell’s comments hinting at looser monetary policy in September. It sparked a surge in forced liquidations.
CoinGlass data shows $379.88 million in short positions were liquidated across crypto. Ether led with $193 million liquidated, followed by Bitcoin at $56.4 million. Total market liquidations both long and short reached $629.48 million. The sudden rebound caught 150,217 traders off guard. Those figures underscore a marked shift in sentiment.
“Uptrend Is Back,” Say Analysts
Michael van de Poppe, founder of MN Capital, flagged the rebound after Bitcoin briefly dipped below its August 3 low of $111,900. He told his X followers that the sweep below that level provided “a great area to accumulate.” He added: “Uptrend is back.”.
Analyst Jelle tempered expectations, noting that retracement may follow Friday’s pump. Yet he emphasized that “the market wants higher.” His comment captures cautious optimism among traders.
The Bitcoin liquidation heatmap revealed that Bitcoin “ate away” ask liquidity above $117,000. More than $259.5 million in ask orders sat between $117,000 and $118,000. The sweep through that resistance zone likely compounded short-pressure, underpinning the liquidity-driven bounce.
Bitcoin Trend Shift? $118K Is Key
Crypto analyst Ali (@ali_charts on X) signaled that Bitcoin entered a trend shift. He said BTC “needs $118,000 breakout to turn bullish again.” That level now stands as a critical threshold. Close beyond could support broader bullish sentiment into year-end.
Powell’s subtle dovish tilt in his Jackson Hole address gave markets renewed hope of a September rate cut. That policy signal appears to have catalyzed the crypto rebound. Institutional players may now recalibrate positions based on shifting rate-cut expectations.
Forecasts Target $145K, $200K Amid Policy Tailwinds
Analyst BitQuant reaffirmed his Bitcoin cycle-top target of $145,000, saying it remains “in play throughout 2025.” Meanwhile, Bitwise’s head of European research, André Dragosch, argued that U.S. President Donald Trump’s decision to allow crypto in 401(k) retirement plans could drive Bitcoin toward $200,000 before year-end. These projections hinge on favorable policy shifts and expanding adoption.
Bitcoin’s rebound came on renewed bullish sentiment. But analysts urge caution. Jelle warned of possible retracement. Ali flagged $118,000 as a breakout threshold. Traders should monitor short-liquidation dynamics and ask liquidity zones closely.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
