Key takeaways:
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Bitcoin surged 5% to $117,300 after Federal Reserve Chair Jerome Powell hinted at an upcoming interest rate cut, liquidating $379.88 million in shorts.
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Analysts say the BTC “uptrend is back,” with the potential to hit $200,000 before the end of the year.
Bitcoin (BTC) took out the ask liquidity above $117,000 on Friday after Federal Reserve Chair Jerome Powell hinted at a potential September interest rate cut during his speech at Jackson Hole.
BTC price rose more than 4% to an intraday high of $117,300 on Bitstamp from a six-week low of $111,600.
According to CoinGlass data, $379.88 million in short positions were liquidated, with Ether (ETH) accounting for $193 million of that total as it soared nearly 15% to $4,760. Bitcoin followed with $56.4 million in short liquidations.
Related: Bitcoin ETFs hit 5-day losing streak, but Pomp says BTC is oversold
Across the board, a total of $629.48 million was wiped out of the market in short and long positions, as shown in the figure below.
The sudden market recovery led to the liquidation of 150,217 traders over the period, catching many off guard as investor sentiment flipped to bullish.
The Bitcoin liquidation heatmap showed the price eating away liquidity above $117,000, with more than $259.5 million ask orders sitting between $117,000 and $118,000.
Bitcoin analysts say “uptrend is back”
BTC’s swept lows below $112,000, providing traders with a good entry position, according to MN Capital Founder Michael van de Poppe.
Earlier in the week, van de Poppe told his X followers to be on the lookout for a sweep beneath the Aug. 3 low of $111,900 as a great area to accumulate.
“A small sweep took place and an immediate massive move upward on #Bitcoin,” he said in a X post on Friday, adding:
“Uptrend is back.”
Fellow analyst Jelle said that it is likely that the Bitcoin price could retrace following today’s pump, but one thing remains clear: “The market wants higher.”
It comes as several crypto industry participants recently shared forecasts for higher prices in the crypto market. Analyst BitQuant said on Monday that his cycle top target of $145,000 for Bitcoin was still in play throughout 2025.
Meanwhile, Bitwise’s head of European research André Dragosch said in Cointelegraph’s Chain Reaction daily X spaces show on Monday that US President Donald Trump’s move to allow crypto in 401(k) retirement plans could push Bitcoin to $200,000 by the end of the year.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
