Bitcoin demonstrated strong bullish momentum over the weekend, rebounding sharply after a significant price drop on Friday. The cryptocurrency is now trading above $118,300, marking a daily gain of over 2% and recovering $3,700 from its weekly low.
The initial dip to $115,000 served as a major liquidity event, liquidating a significant number of overleveraged positions. According to market analysts, this move also filled a key CME futures gap and presented a buying opportunity that institutional investors capitalized on. Analyst Ash Crypto noted on social media platform X that “bulls are in control” after Bitcoin closed above critical bullish levels.
With the price recovering, traders are now shifting their attention toward breaking previous all-time highs. Data from the monitoring resource CoinGlass shows that the recent move above $118,000 has cleared a pocket of liquidity, with the next major cluster concentrated around the $120,500 mark. Analysts believe this level is acting as a magnet for the price. A decisive break above $120,000 could trigger a short squeeze, potentially forcing short sellers to close their positions and driving the price toward the next high-liquidity zone at $124,000.
Amid the renewed optimism, prominent market strategists have reiterated bullish long-term forecasts. Tom Lee, head of research at Fundstrat, maintained his prediction that Bitcoin could reach $250,000 by the end of 2025. In a recent interview, Lee explained that such a valuation “still makes sense,” as it would place Bitcoin’s market cap at only 25% of the gold market. He argued that as a form of “digital gold,” Bitcoin’s long-term potential could see it valued at over $1 million per coin.
Lee is not alone in his optimistic outlook. Researchers at Bitwise have cited potential tax cuts and rising U.S. debt as factors that could push Bitcoin’s fair value to between $200,000 and $230,000 by year-end. Similarly, other technical analysts have pointed to chart patterns suggesting a peak around the $200,000 level.
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