Bitcoin Knocking on the ATH Again—After Breaking $121,800, Here’s Where it May Head To!

Since the 2024 breakout, the Bitcoin price has maintained a consistent trend. It has been forming consecutive higher highs and lows, signaling the bulls holding a significant dominance. Although the bears hindered the progress of the rally at frequent intervals, from a larger perspective, it remained within a strong bullish range. Now that the BTC price broke out above $121,800, the question arises: how high can the Bitcoin price go in the next few days? 

Huge Short Liquidations

Crypto liquidation refers to the process of forcibly closing the trader’s positions in the market. The short positions increase when the traders bet largely on the price falling in the near future. However, when the token goes against the bet, the ‘forced liquidation’ occurs after hitting the set threshold levels set by them. This further pushes the price higher, which has been witnessed in the current breakout, as more than $200 million in shorts were liquidated in the past couple of hours. 

As per the data from Coinglass, in the past 24 hours, nearly $289 million worth of shorts were liquidated, of which $205 million were liquidated in the past hour. Nearly 110,000 traders were liquidated, with the single largest liquidation worth $95 million. The price has surged above all of the liquidation levels, which suggests there are no barriers to hinder the BTC bull run. 

Open Interest Smashed ATH

Open interest (OI)  is a crucial indicator that describes the mindset of the traders dealing in futures or options. It is nothing but the total number of outstanding Bitcoin futures or options contracts in the market. It indicates the amount of money invested in Bitcoin derivatives at any given time. The rise and fall in these levels highly impact the spot prices, which closely follow them. The BTC OI has now reached the highest ever levels, which point towards a massive rise in the traders’ optimism. 

The OI has been on the rise since the second quarter of 2024, which further exploded during the Q4 breakout. Ever since the BTC price has broken the psychological barrier at $100K, the OI has seen an exceptional rise, which has now marked a new ATH at $84.68 billion. Interestingly, the levels continue to rise, which suggests the traders are extremely bullish on Bitcoin and hence the price is set to rise high. 

What’s Next for the Bitcoin Price Rally? How High Can it Go?

Bitcoin price smashed a new ATH at $121,209.01, a few moments ago after closing one of the highest weekly closes ever. With this, the momentum was already extremely bullish, which has kept the price above the $120,000 threshold. With this, the bullish continuation seems to be validated and hence the BTC price may remain elevated for the rest of 2025. 

A popular analyst, Ali, shares the chart of BTC, which displays the recent highs of Bitcoin when it reached the highest bands. MVRV pricing bands. Considering these bands, the next highs are expected to be somewhere around $127,000. However, it would be interesting to see how the price behaves after reaching these levels, as the rally witnessed a correction previously. 

With the recent rise, Bitcoin has now become the 5th largest asset, surpassing the giants like Amazon, Silver and Alphabet (Google). On the other hand, the institutions continue to accumulate BTC while their unrealized profits are in the billions. This suggests the Bitcoin bull run is being reinstituted, and hence a slow yet sustained rally may elevate the levels to new highs.