Bitcoin News Today: Bitcoin Bull Run May Resume The 5 Key Signals After $112K Liquidity Sweep
Key Takeaways:Bitcoin’s “Power of 3” pattern suggests a path to $126,000 after market manipulation and leverage reset.$922M in liquidations and negative funding rates point to short-term capitulation and potential rebound.BTC must reclaim and hold $115,300 and $116,800 to confirm bullish momentum, with $120K acting as a price magnet.Binance taker volume and open interest metrics hint at a shift in market bias.Key resistance levels align with prior all-time highs, increasing bullish probabilities if broken.Bitcoin Eyes Recovery After $112K ShakeoutBitcoin (BTC) is showing early signs of a potential bull market continuation following a sharp pullback to $112,000 over the weekend. As of writing, BTC is hovering around $115,148, attempting to reclaim critical short-term resistance levels. Analysts say the recent drawdown may have flushed out excessive leverage, clearing the path for a resilient recovery — but key confirmations are still needed.1. Power of 3 Pattern Targets $126,000BTC price action is following the “Power of 3” market structure — Accumulation, Manipulation, and potential Distribution:Accumulation: Between $119,500 and $115,300, forming a consolidation base.Manipulation: The sharp drop to $112,000 acted as a shakeout of over-leveraged longs and panic-driven retail traders.Distribution: If BTC reclaims $115,300 and holds it on both low- and high-time frames, it could set the stage for a run toward $126,000 — a level aligned with recent resistance clusters and liquidity targets.This pattern, often used to model institutional trading behavior, hints that the market may now be preparing for the final leg of a bullish continuation.2. $922M Liquidation Resets Market LeverageA massive $922 million liquidation event on Friday marked the highest daily wipeout since February 2025. Of that, over $240 million came from Bitcoin futures, with total open interest dropping from $88 billion to $79 billion — a steep 10% decline.Such leverage resets are historically bullish, as they remove speculative excess and allow for new long positions to enter from stronger hands. Funding rates have also turned negative across platforms signaling that retail traders are overly bearish and potentially mispositioned.3. Binance Net Taker Volume Hints at CapitulationCryptoQuant data shows Binance’s cumulative net taker volume fell below -$1.5 billion, a threshold last breached on July 25. This metric reflects aggressive market selling, often linked to forced liquidations and emotional exits from long positions.The drop coincides with the panic around BTC’s fall from $114K+, and may signal a local bottom as retail participants capitulate while institutional or calculated buyers accumulate.4. Fair Value Gap Absorbed, Support RetestedBitcoin has now absorbed the fair value gap (FVG) between $115,200 and $112,000, an important high-timeframe liquidity zone. This also aligns with Bitcoin’s previous all-time high from May, now acting as a structural support level.The successful retest of $112,000, combined with recovery toward $115K, supports the idea that the shakeout was liquidity-driven rather than trend-breaking.Analysts view this as a bullish structural reset, especially if BTC can flip $115,300 into support and aim for the next zone at $116,800–$120,000.5. $120K Acts as Price Magnet — But Confirmation NeededAccording to market heatmaps and liquidity data, $120,000 is the next major magnet for price action, with a dense cluster of sell-side liquidity resting at that level.Popular analyst Michaël van de Poppe emphasized that BTC is now testing critical resistance. A break above $114,800 and $116,800 would signal a trend reversal and pave the way toward $120K — and possibly higher.However, if bears regain control, a brief retest of $110,000 cannot be ruled out before any further rally resumes.Bullish Reversal or More Consolidation?The combination of a technical pattern, derivatives reset, and liquidity metrics paints a cautiously optimistic picture for Bitcoin bulls. Still, reclaiming and holding above $115,300 and $116,800 is essential before calling for a confirmed move toward $126,000.Should ETF inflows stabilize and macro risk tone remain neutral, Bitcoin could soon resume its broader bull market, with current weakness serving as a springboard rather than a signal of longer-term correction, according to Cointelegraph.