Bitcoin’s relentless upward march has traders on edge, and for good reason — it’s not just about setting new records anymore, it’s about flipping the entire market structure. With BTC hovering just shy of $110,000, crypto analysts are watching closely for a potential breakout that could spark a fresh wave of price discovery. For the uninitiated, price discovery occurs when an asset moves into uncharted territory, where buyers and sellers have no historical reference point — only supply and demand dictate the next move.
As of now, Bitcoin is trading around $107,959, following a strong weekly close at $106,407 on May 18. That figure marked the highest weekly close in BTC’s history, and all signs point toward May possibly wrapping up with the strongest monthly close ever if Bitcoin ends above $102,400. That would not only confirm the ongoing bull cycle but also inject renewed momentum into market sentiment.
Crypto trader Jelle recently emphasized that Bitcoin is “inches away” from entering a full-blown price discovery phase. A close above $110,000 would confirm it, and what comes next could be a rollercoaster of new highs as the market attempts to find a balance in this unexplored range.
On the technical front, Bitcoin is close to printing a daily “golden cross,” where the 50-day moving average crosses above the 200-day moving average. Historically, such golden crosses have been reliable indicators of continued upside, often preceding rallies in the 45%–60% range. If that pattern holds true, Bitcoin could be in for another leg up — possibly even this month.
A monthly close near $110,000 would also represent a 15%–17% increase for May — a performance not seen since 2019. For comparison, Bitcoin’s historical average return for May sits around 8%, according to CoinGlass. That would make this month more than just statistically impressive; it would signal a resurgence of strong bullish momentum.
But the most explosive potential lies in what some analysts are calling a “liquidation magnet.” Technical researcher Axel Adler Jr. highlighted a buildup of over $3 billion in short positions that could be liquidated if BTC breaks above $107,000. These short positions — traders betting that Bitcoin’s price will go down — become vulnerable as price climbs, often triggering a cascade of forced buy-backs, which accelerates upward momentum. It’s a setup eerily reminiscent of 2017, when Bitcoin went parabolic from $1,000 to $20,000.
Adler pointed to a compression pattern — a narrowing of Bitcoin’s price range over 180 days — which historically has preceded massive price movements. In fact, we’re now in the third such compression cycle, mirroring the build-up to the 2017 surge. Add to that the increased volatility signaled by Bollinger Bands, and it’s easy to see why many are anticipating fireworks.
From a liquidation standpoint, the imbalance is stark. If Bitcoin rises from $105,000 to $110,000, it could wipe out over $3 billion in shorts. Conversely, to trigger that level of liquidation on the long side, BTC would have to crash to around $94,612. The skew favors an upward move, especially given the proximity of the current price to the liquidation threshold.
Technical analyst Gert van Lagen summed it up succinctly: “A liquidation magnet is glowing above $107K, ready to vaporize billions in shorts. First, BTC soared on fear. Next, it’ll rise on liquidations.”
As the days tick down to month’s end, all eyes are on Bitcoin’s next move. Whether it breaks into a new era of price discovery or consolidates before its next breakout, one thing is certain — the battle between bulls and bears is about to get a lot more intense.
