Bitcoin broke through the $112,000 all‑time high in early July, sparking a wave of liquidations among bearish traders. Over $200 million worth of short positions were unwound as the price cleared critical resistance levels.
This surge was part of a broader market rally that extended into a new peak near $116,500 before a mild pullback. Data shows that more than 114,000 traders were wiped out, with total losses exceeding $540 million—most of that from shorts, while long positions accounted for around $70 million. The event marked one of the most significant liquidations since May.
Institutional interest has played a key role in the rally. Bitcoin spot ETFs, led by BlackRock’s IBIT, surged in inflows, supporting demand and contributing to price momentum. On‑chain trends point to accumulation as long‑term holders and institutional wallets continue to reduce exchange reserves.
Market indicators classify Bitcoin as increasingly safe-haven in tone. Amid macro uncertainty and renewed tariff concerns, investors appear treating the asset as a hedge against fiat weakness.
But despite the strong price action, analysts warn that spot market demand remains tepid. The net cumulative volume delta remains below peak levels, suggesting that leverage-driven moves could falter without fresh sustained buyer interest.
Technically, Bitcoin is trading in a consolidation band between $115,000 and $120,000. Resistance around $120,000 must flip into support to clear the way for new highs. Some chart setups, including retest of a falling wedge breakout, hint at upside if volume picks up. Without that, the market could rest or pull back toward support zones near $107,000.
In short, Bitcoin’s ascent past $112,000 underscores strong momentum driven by derivative liquidations and fund flows. Continued strength, however, hinges on spot demand and institutional accumulation to maintain a sustainable breakout.
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