Bitcoin Smashes Through $118,000 As Short Sellers Face $1 Billion Liquidation Bloodbath

Bitcoin recorded a stunning surge to $117,667.59 on July 11, 2025, marking a 6.05% gain in 24 hours and establishing a new all-time high that has left short sellers reeling from over $1 billion in liquidations.

The cryptocurrency market witnessed unprecedented volatility as institutional demand and Federal Reserve policy expectations converged to create a perfect storm for digital assets.

The world’s largest cryptocurrency demolished multiple resistance levels in a rapid ascent that caught traders off guard. Bitcoin ETFs attracted $218 million in daily inflows, with BlackRock‘s IBIT leading the charge with $125.58 million.

The surge triggered the largest liquidation event since January, as 237,000 traders saw their positions forcibly closed. Exchange data reveals the brutal reality for short sellers.

Binance recorded $140.09 million in liquidations, while Bybit saw $133.85 million wiped out. The largest single liquidation occurred on HTX, where a Bitcoin short position worth $88.5 million was eliminated.

Short positions dominated the carnage, representing over 90% of liquidations on most exchanges. Federal Reserve minutes released Wednesday showed growing divisions among policymakers regarding interest rate cuts.

Most officials expect rate reductions in 2025, with some expressing openness to a July cut. The dollar index fell 10.1% year-to-date, its worst performance since 1973, making Bitcoin more attractive as an alternative store of value.

Technical analysis reveals Bitcoin trading near the upper Bollinger Band with RSI approaching overbought conditions around 70. The MACD indicator shows strong bullish divergence, while moving averages confirm the uptrend across all timeframes.

Volume surged dramatically, validating the breakout above $113,000 resistance. The crypto Fear and Greed Index registered 71, indicating greed territory but not extreme overbought conditions.

This suggests room for further upside momentum, with options traders targeting $120,000 in the near term. Longer-term options show elevated open interest at $140,000 and $150,000 strike prices.

Corporate Bitcoin adoption accelerated alongside the rally. Trump Media & Technology Group filed SEC documents outlining plans for a Bitcoin-focused ETF, while Japanese investment firm Metaplanet acquired additional Bitcoin for its treasury.

These moves reflect growing institutional conviction in Bitcoin’s long-term value proposition. The cryptocurrency market capitalization jumped to $3.69 trillion, gaining $160 billion in 24 hours.

Ethereum reached $3,000.69, up 8.06%, while other major cryptocurrencies posted significant gains. XRP climbed 6.54% to $2.5828, and Solana advanced 5.44% to $165.79.

Market structure analysis shows the breakout originated from a symmetrical triangle pattern that had been compressing volatility for weeks. The resolution to the upside confirms bullish momentum, with the next psychological resistance at $120,000.

Support levels have been established at $115,000 and $112,000-$113,000. Exchange reserves continue declining, with Bitcoin held on exchanges dropping to multi-year lows.

This supply squeeze, combined with sustained institutional demand, creates favorable conditions for continued price appreciation. The Stablecoin Supply Ratio MACD recently completed a bullish crossover, indicating fresh capital deployment.

Looking ahead, analysts project Bitcoin could reach $130,000 in the current wave, with some targeting $140,000 by year-end.

The combination of institutional adoption, regulatory clarity, and technical momentum suggests the rally has further room to run, despite potential short-term corrections as the market digests recent gains.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

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