Bitcoin’s Surge Depends on $117,500 as Bulls Target Record High

Bitcoin has recently captured the spotlight once again as its price climbed above $118,000, prompting renewed interest among traders and market observers. After experiencing a steep decline and subsequent recovery in the wake of the U.S. Federal Reserve’s quarter-point rate reduction on September 17, 2025,

is now approaching significant resistance zones that could decide whether it will attempt to surpass its previous record high of $124,000. Experts point out that if buyers manage to push and sustain prices above $117,500, a move toward $120,000 or higher becomes increasingly likely.

Technically, the outlook favors the bulls, as Bitcoin has held firm near crucial support levels and is demonstrating robust on-chain indicators. On the 4-hour timeframe, the cryptocurrency rebounded after touching the lower boundary of an upward channel and the foundation of a bullish flag formation. Nonetheless, $117,500 stands as a major obstacle. To truly break out, both a close and an open above this threshold are needed. Broader timeframes, including daily and biweekly charts, further highlight the significance of this resistance point, with Bitcoin currently navigating a pivotal moment.

The bullish narrative is further supported by surging activity in the Bitcoin derivatives markets. After moving past $118,000, more than $1.25 billion worth of positions were liquidated in just one day, with about $1.12 billion of that from short trades. This suggests many traders were betting on a decline that ultimately did not occur. Well-known traders like James

, faced substantial losses on leveraged shorts, while others called it the biggest short squeeze in recent memory. The Open Interest (OI) in Bitcoin derivatives also hit a record $78.6 billion, reflecting a strong conviction among traders anticipating the rally to continue.

Growing institutional interest and positive regulatory signals have further strengthened Bitcoin’s prospects. Publicly listed firms now possess more than 628,000 BTC—valued at over $74 billion—with companies such as MicroStrategy continuing to accumulate. Additionally, spot Bitcoin ETFs have attracted significant capital, drawing close to $935 million in inflows on August 9, 2025. These developments are bolstered by regulatory momentum, including the establishment of a state-backed Bitcoin reserve in Texas and the passage of federal regulations like the GENIUS and CLARITY Acts, which seek to bring greater clarity to the treatment of digital assets.

Going forward, market watchers are eagerly awaiting a decisive move above $117,500. Should this break hold, Bitcoin could set its sights on $120,000, with the potential to reach $131,000—a target identified by analyst Donald Dean using Fibonacci projections. Achieving this would mean an approximate 13% gain from where prices currently stand, provided that the volume support between $116,000 and $118,000 remains intact. Despite the growing optimism, experts warn that price swings could remain volatile, and unexpected developments or shifts in the broader economy might spark sharp reversals, particularly given the high leverage in derivatives trading.

Bitcoin’s trajectory is also influenced by the broader backdrop of global liquidity. Historical trends reveal a strong link between Bitcoin’s price movements and expansions in worldwide M2 money supply. As central banks in countries like the U.S., China, and those in Europe continue to inject liquidity, Bitcoin often prices in these trends well ahead of time. Analysts believe that the current rapid pace of global liquidity growth, together with the forthcoming Bitcoin halving in 2025, could provide substantial momentum for the cryptocurrency. Nonetheless, they urge caution—especially for individual investors using significant leverage in derivatives markets.