Bitcoin Hits $117,000: Market Analysis

On July 10, 2025, Bitcoin (BTC) reached a new all-time high of $117,000, resulting in over $850 million in liquidations across the crypto market, primarily affecting short positions. This significant price movement, which marked an 8% increase since July 9, also positively impacted altcoins such as XRP and Ethereum, which experienced even greater gains.

Liquidation Overview

Data from CoinGlass indicated that the majority of liquidations were from short positions, with approximately $730 million liquidated over two days—$447.54 million on Wednesday and $282.89 million on Thursday. Long positions also faced challenges, with around $123 million wiped out during the same period. The surge in liquidations, especially from short sellers, contributed to a short squeeze, further propelling Bitcoin's price upward.

Market Dynamics

Bitcoin's perpetual futures funding rates remained in positive territory, indicating strong demand for long positions. This reflects traders' willingness to pay a premium to maintain bullish exposure, suggesting a robust market sentiment.

Factors Driving Bitcoin's Surge

The recent rally in Bitcoin's price can be attributed to several factors:

• Political Support: Positive remarks from U.S. President Donald Trump on his Truth Social platform reinforced a pro-crypto narrative, contributing to market momentum.
• Institutional Demand: There has been a significant increase in inflows into U.S.-based Bitcoin ETFs, with total assets under management rising from $105.43 billion at the beginning of the year to $136.50 billion by July 9.
• Corporate Accumulation: Public companies have increased their Bitcoin holdings by 250%, adding a record 159,107 BTC worth over $18.30 billion in the second quarter of 2025 alone.
• Weak U.S. Dollar: A declining U.S. Dollar Index (DXY) has also provided upward momentum for riskier assets, including Bitcoin.

Technical Analysis

Bitcoin has successfully broken above the upper trendline of a month-long bull flag pattern, which typically indicates a continuation of the bullish trend. The measured move from this breakout suggests a target price of over $120,000. The breakout was accompanied by increased trading volume, and technical indicators such as the 50-day EMA trending above the 200-day EMA further support the bullish outlook. The Relative Strength Index (RSI) is near 71, indicating strong buying pressure without being overbought.

Conclusion

As Bitcoin approaches the $120,000 resistance level, the combination of political support, institutional demand, and favorable market dynamics positions it for potential further gains. Traders and investors should remain vigilant of market conditions and technical indicators as they navigate this volatile landscape.