Key Insights

• When Bitcoin surpasses $102,400 at the month’s end, it signals a new peak for ongoing bull market momentum.

• Short positions amounting to over $3 billion in Bitcoin may become vulnerable if prices rise above $107,000, creating potential “clearing magnets” that could push BTC to new highs.

Bitcoin (BTC) is now 11 days into what might be its most remarkable monthly close ever. After achieving a record closing price of $106,407 on May 18, BTC climbed past $102,400 this month, marking a new monthly high.

Looking at the current trends, Bitcoin is quite close to entering a so-called “price discovery” phase, as noted by Crypto Trader Jelle. In this context, price discovery refers to how buyers and sellers engage in determining the market price in a previously uncharted price range.

If Bitcoin breaks its all-time high of over $110,000, we’ll likely see this price discovery phase unfold, sending BTC into previously unexplored trading territories as market players work to establish a new balance of supply and demand.

Reports indicate that Bitcoin is nearing a “golden cross” on its daily charts, which, if it occurs, could indicate that BTC is poised for a new high this month.

With a monthly close around $110,000, Bitcoin could see a profit increase of 15% to 17% for May, marking its best performance since 2019. The average monthly return during this period stands at about 8%.

Bitcoin Short Positions at Risk Above $107,000

Researcher Axel Adler Jr. is monitoring key technical patterns in Bitcoin’s current bull cycle, specifically noting three recent instances of price compression. This refers to a tightening price range calculated over a span of 180 days.

Historical charts reveal that such compressions have often led to breakouts, reminiscent of the massive price surge from $1,000 to $20,000 in 2017.

By examining Bollinger Bands alongside current price ranges, it suggests that volatility is building in this cycle. This third phase of compression in 2025 looks similar to the previous cycle, driven by events like Bitcoin Halving and associated supply shocks that drive retail interest and price spikes.

In terms of liquidation risks, if Bitcoin’s price climbs from $105,000 to $110,000, it could trigger the liquidation of short positions exceeding $3 billion. Conversely, for a comparable situation in long positions, the threshold would be around $94,612. This imbalance hints that a price increase is more likely as market dynamics seek out sell-side liquidity.

Technical analyst Gert Van Lagen expressed a similar outlook, stating that “the liquidation magnet shines above $107,000 and is ready to evaporate billions. First, BTC surged amid fear, and now it is poised to rise toward liquidation.”

This content does not provide investment advice or recommendations. All investment and trading activities carry risks. Readers should conduct their own research before making decisions.