Bitcoin’s (BTC) price skyrocketed to over $100,000 on May 9, marking a 4.3% increase within a 24-hour period. The cryptocurrency hit a high of $104,150 during the late New York trading session, according to data from Cointelegraph Markets Pro and Bitstamp. This surge represents Bitcoin’s highest level in over 90 days and comes as market sentiment continues to intensify.
Liquidity Wipeout Fuels Bitcoin Rally
A massive liquidity cascade played a pivotal role in Bitcoin’s rapid ascent, with over $925 million in crypto liquidations recorded within a 24-hour period. According to CoinGlass, $800 million of these liquidations were short positions, marking the largest short liquidation since 2021. As a result, the Crypto Fear & Greed Index jumped from 65 to 73, reflecting heightened investor greed.
Additionally, significant seller interest remains above the current spot price, with $2.85 billion in ask-orders clustered near the all-time high of $109,500. Analysts suggest that Bitcoin could continue its rally toward $106,000 in the short term, driven by strong support from moving averages and bullish technical indicators.
This is the largest short liquidation since 2021.
— CoinGlass (@coinglass_com) May 9, 2025
$837.80M of short positions wiped out in the past 24 hour.
PS:Binance has not fully disclosed its liquidation data, and the actual data is more.https://t.co/C47AgBBF3Mhttps://t.co/7aKXaaUZsv pic.twitter.com/YAvOgAZAEQ
Technical Analysis: Overbought But Supported by Moving Averages
Despite Bitcoin triggering overbought conditions on the Relative Strength Index (RSI), which rose above 70, analysts remain optimistic. Crypto analyst GemXBT highlighted that BTC/USD is trading above the 5MA, 10MA, and 20MA, signaling robust bullish momentum. “The MACD is above the signal line, supporting the bullish sentiment,” GemXBT noted.
Meanwhile, AlphaBTC, a well-known crypto trader, projects a near-term target of $106,000 based on Fibonacci retracement levels. For a more ambitious outlook, Egrag Crypto asserts that Bitcoin could hit $170,000 if it closes above the all-time high of $109,000.
Also Read: Bitcoin Eyes $100K: Record Capital Inflows Signal New Bull Cycle Breakout
Bull Flag Breakout Targets $180,000
From a technical standpoint, Bitcoin has formed a bull flag pattern, a classic bullish indicator that typically precedes substantial price gains. With the breakout above the $88,000 level on April 22, the pattern now suggests a potential target of $182,200, representing a 75% upside from current levels.
Binance CEO Changpeng Zhao further fueled bullish expectations by stating that Bitcoin could reach between $500,000 and $1 million during this cycle, driven by institutional adoption, government accumulation, and favorable policies under the Trump administration.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
