The Bitcoin price has climbed 1% to $107,000, marking a renewed surge in market momentum as global liquidity reaches an all-time high (ATH). With trading volume spiking 11% over the past 24 hours, investor confidence appears to be strengthening. This confluence of rising liquidity and increasing demand is reigniting bullish sentiment, with many analysts forecasting a breakout toward $110,000–$112,000 in the near term.
"Global Liquidity just broke out to a new all-time high.
That’s not noise. That’s fuel.
Every time liquidity hit ATHs, $BTC followed with violent upside."
— Merlijn The Trader
As highlighted by prominent on-chain analyst Merlijn The Trader, historical trends show a strong correlation between surges in global liquidity and explosive Bitcoin rallies. Each time liquidity peaked in prior cycles, Bitcoin responded with sharp upward movements—suggesting the current environment may be setting the stage for another significant breakout.
👉 Discover how market cycles and liquidity trends are shaping the next Bitcoin surge.
Bitcoin Maintains Bullish Momentum Amid Consolidation
Bitcoin continues to trade within a tight consolidation range between $105,000 and $107,830, recently rebounding from a low of $105,380. This phase of price stabilization follows a broader pattern often seen before major breakouts, where accumulation occurs ahead of the next leg up.
Key support levels remain firmly intact at $96,000 and $106,000, providing a solid foundation for bulls. If these levels hold, the market could see a decisive move above resistance, potentially pushing Bitcoin toward its previous all-time high of $112,000.
Technical Indicators Signal Room for Growth
The Relative Strength Index (RSI) currently sits at 55.71 on the daily chart—well within neutral territory and far from overbought conditions (typically above 70). This suggests that upward momentum is sustainable and not yet exhausted. Additionally, Bitcoin remains above the 50-day moving average, reinforcing the bullish bias.
More importantly, the liquidation landscape reveals a telling imbalance: long liquidations have reached $3.17 billion**, significantly outpacing **short liquidations at $1.97 billion over the past 24 hours.
This disparity indicates that leveraged long positions are dominant in the market. While this could increase volatility, it also raises the potential for a short squeeze—a scenario where rising prices force short sellers to close positions, further accelerating upward momentum.
👉 See how real-time liquidation data can help predict market reversals.
Why $110K Is in Sight for Bitcoin
With global financial conditions expanding and liquidity at record levels, macroeconomic tailwinds are aligning in Bitcoin’s favor. Historically, periods of high liquidity—driven by central bank policies, quantitative easing, or increased credit availability—have flowed into risk assets, with Bitcoin increasingly viewed as a hedge against monetary expansion.
As resistance around $108,000 begins to weaken, a breakout into the $110,000–$112,000 range becomes increasingly plausible. Key catalysts include:
- Sustained institutional inflows
- Growing adoption of Bitcoin as a reserve asset
- Increased leverage usage signaling strong conviction
If buying pressure continues and support holds, the path to $112,000—the current all-time high—could open rapidly. Beyond that, long-term bulls are already eyeing $125,000 as the next major psychological and technical target.
Traders should monitor the $105K–$106K zone closely; a decisive drop below this range could signal a pause in the rally. However, as long as price action remains above this floor, the bias stays firmly bullish.
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Frequently Asked Questions
Q: What is driving Bitcoin’s price increase right now?
A: The primary driver appears to be a surge in global liquidity reaching an all-time high. Historically, such liquidity expansions have fueled strong rallies in risk assets, including Bitcoin. Increased trading volume and investor confidence further support this upward movement.
Q: Is a Bitcoin breakout to $110K likely?
A: Yes. With technical indicators showing room for growth and key support levels holding strong, a breakout above $108K could accelerate momentum toward $110K–$112K. The imbalance in liquidations also increases the likelihood of a short squeeze, which could propel prices higher quickly.
Q: What are the key support and resistance levels for Bitcoin?
A: Major support lies between $105,000 and $106,000, with deeper support at $96,000. Resistance is forming near $108,000, and a break above $112,000 would confirm a new all-time high.
Q: Could Bitcoin reach $125K in 2025?
A: While $125K is not immediate, long-term bullish sentiment remains strong. If current macroeconomic trends continue and adoption grows among institutions and nation-states, such a target becomes increasingly feasible within the year.
Q: How does global liquidity affect Bitcoin?
A: High global liquidity means more capital is available in financial systems. Investors often deploy this excess capital into alternative assets like Bitcoin, especially during periods of low interest rates or monetary easing—making liquidity a key leading indicator for BTC price movements.
Q: What risks should traders watch for?
A: The main risks include a breakdown below $105K support, excessive leverage leading to cascading liquidations, or sudden macroeconomic shifts (e.g., tighter monetary policy). Monitoring on-chain data and funding rates can help assess these risks in real time.
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Bitcoin’s current trajectory reflects a maturing asset class increasingly influenced by macroeconomic forces. With liquidity surging and technical conditions favoring upside, the stage may be set for another powerful rally. While volatility remains inherent, the confluence of on-chain data, market structure, and investor behavior points to continued upward pressure in the weeks ahead.