Bitcoin just rallied over 5% in 24 hours, breaking above $116,460, driven by three converging forces: a massive $940 million short squeeze, continued institutional accumulation, and a technical breakout that shattered the $112K resistance.
Short Squeeze Sparks Frenzy
Within the past day, heavily leveraged short positions were violently liquidated, forcing automated buybacks that intensified the rally. Estimates are that $940 million worth of shorts were squeezed out—creating a feedback loop of liquidations and further price spikes. This sudden supply squeeze ignited the momentum seen in the fresh all-time high.
Institutional Inflows Steal the Show
Long-term money is still dominating Bitcoin’s supply dynamics:
- Spot Bitcoin ETFs continue to attract major inflows. Assets under management in Bitcoin ETFs surged past $130 billion as of mid‑2025, with BlackRock’s IBIT alone overseeing nearly 700,000 BTC.
- Corporate treasuries remain heavy buyers. MicroStrategy amassed 597,325 BTC, up ~18% year‑to‑date.
- ETF flows have already outpaced gold by 70% in net inflows this year.
- Supply is tightening as long-term holders and institutions remove BTC from circulation—adding upward pressure amid new demand.
Technical Breakout Confirms Momentum
Bitcoin surged well above the long-standing $112K zone, marking a decisive technical shift:
It broke out from a descending channel, with rising RSI still below “overbought” territory—hinting at more runway ahead.
Analysts from Investopedia project a chart-based upside target of $146,400, about 32% above current levels.
This clean break injected fresh enthusiasm, reinforcing both short- and long-term bullish outlooks.
Macro Backdrop: Dovish Fed & Dollar Weakness
Recent dovish signals from the U.S. Federal Reserve, alongside a weaker dollar, are nudging investors toward risk assets:
The Fed has hinted at possible rate cuts, reviving appetite for Bitcoin and equities.
The U.S. dollar has slid sharply this year—down over 10%, its worst performance since the 1970s.
Macro headwinds like looming geopolitical tensions and fiscal deficits are catalyzing interest in Bitcoin as a hedge.
Fresh Data & Forecasts from Top Analysts
Standard Chartered projects Bitcoin could rally to $200K by 2025, citing Q2 inflows of $12.4 billion and rising corporate reserves.
Di Wu (via arXiv), examining data from 2018–2025, identified Bitcoin’s correlation with major equity indices rising to 0.87 following key institutional milestones—highlighting its growing status as a portfolio asset.
Investopedia flags support levels at $107K and $100K, with resistance at $146K as a potential future target.
What Analysts Say
Bloomberg confirms Bitcoin topping $112K yesterday, describing it as a “broad risk‑on rally” defying macro risks.
Active Traders (Proactive) noted that the move reflects escalating institutional demand and strategic adoption.
What Comes Next?
Continued Upside or Cooling Off?
If ETFs and corporate treasuries maintain pace, momentum could extend toward $140K–$150K territory.
A potential retracement to $107K–$110K might offer institutional re-entry points without undermining the bullish setup.
Risks to Watch
Unexpected regulatory shifts or delays under frameworks like the GENIUS Act could trigger caution.
Any sudden spike in volatility could shake out weak hands, especially if momentum is halted.
Broad macro reversals, such as a hawkish turn from the Fed or dollar resurgence, may slow down crypto-related capital flows.
Key Levels & Watchlist
$100K – Major long-term support around 50‑day MA
$112K–$116K – Current breakout zone / battleground
$140K–$146 K – Technical upside target from channel break
Bitcoin’s leap above $116,460 marks the continuation of an institutionally driven bull run, amplified by technical momentum and macro tailwinds. With short-sellers squeezed out, ETFs gobbling supply, and companies stacking BTC on their balance sheets, the current rally could still have legs.
Read Also: Think Bitcoin Is Too Volatile To Invest In? Think Again
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
