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Bitcoin Rally Sparks Concerns Over Potential Short Liquidations

Bitcoin Rally Sparks Concerns Over Potential Short Liquidations
Elliot Graves | BITCOIN | EN | August 11, 2025

Bitcoin's price surge toward the $120,000 mark has the market on edge as concerns grow over the possibility of significant short liquidations and increased volatility. Analysts are closely monitoring the potential impact of a 10% price increase, which could trigger over $18 billion in short liquidations and reveal a concentration of bearish positions in the market.

Institutional Traders Keep Close Eye on Resistance Levels

Institutional traders are closely watching key resistance levels as Bitcoin approaches the critical $120,000 threshold. On-chain data indicates a trading range around $116,877, with signs of recovery after a brief correction. The market sentiment remains generally positive, with large-cap cryptocurrencies showing strength and increased institutional activity potentially driving further price increases.

Analysts Warn of Potential Corrections Amid Market Uncertainty

Despite the bullish momentum, analysts caution against sharp price corrections driven by short squeezes and macroeconomic risks. The market's uncertainty over altcoin momentum versus Bitcoin dominance adds to the complexity, with questions arising about the sustainability of the current trend. Traders and investors are advised to remain cautious and adjust their strategies accordingly as the situation evolves.

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