Bitcoin Targets $135K as LTH Adds 300K Coins in 20 Days

Key Insights:

• Over $8.5B in Bitcoin shorts could be liquidated if price hits the $115K mark.
• Long-term holders have added 300,000 BTC worth $32B during low spending activity.
• Funding rates remain flat, signaling low leverage and a healthy market structure.

Bitcoin (BTC) has broken above $108,000 and now $8.5 billion worth of short positions are in danger of liquidation at $115,000.

Meanwhile, long-term holders (LTHs) have added 300,000 BTC in the last 20 days. The confluence of strong accumulation and potential short liquidations could propel a sharp move to higher levels, with traders now looking at $120,000 and $135,000.

Bitcoin Flips Resistance into Support While Liquidation Pressure Builds

After breaking a key weekly resistance at $105,000, Bitcoin is trading above $108,700. Analyst CryptoPatel commented that this is a bullish “Break of Structure” and confirms trend strength.

Now, the price has entered a major resistance zone between $99,500 and $109,500, where it was a supply area. A weekly close above $109,600 would confirm a breakout and would open the way for new all-time highs.

There is still an unfilled Fair Value Gap (FVG) below current levels, from $84,000 to $91,000 which could be strong demand if a pullback happens.

As long as Bitcoin is above $105,000, the broader trend remains bullish. And this level, which was once a ceiling, is now a floor, giving buyers even more confidence to enter the market.

According to new data from Coinglass, more than $8.5 billion worth of short positions could be liquidated if BTC hits $115,000. This massive cluster of short liquidations piles on the upside.

Triggered, these forced buybacks could push prices towards $120,000 and $135,000. Much of this short interest is concentrated on exchanges such as Binance, OKX and Bybit, with the largest volume seen just above current levels.

LTH Accumulation Reaches $32B During Minimal Spending Period

Over the last 20 days, long-term Bitcoin holders have added 300,000 BTC to their balances. That’s more than $32 billion worth of accumulation at the current price.

This surge has happened during a period of very little selling, with LTH spending dropping to its lowest level since September 2024, as per CryptoQuant.

This low activity is strong market conviction, according to analyst Axel Adler Jr. Long-term holder supply now stands at 14.6 million BTC. They are currently sitting on unrealized profits, but they are still holding or buying more.

This is a behaviour that has shown up in previous cycles, where large LTH accumulation and little selling preceded extended price rallies.

This outlook is supported by the Rate of Change (ROC) Zones chart from CryptoCon. With Bitcoin now in the “Standard High” zone, a mid-cycle phase that has historically been followed by further gains.

This recent dip to $76k is a “Healthy Retest” and not a bearish one. This is not unusual in slow-developing bull markets, CryptoCon says the cycle is still unfolding. Standard highs are usually seen before the final cycle top, which leaves room for more growth in the months ahead.

Calm Derivatives Market and Broader Risk-Off Sentiment Provide Stability

While spot markets are strong on the buy side, derivatives data provides further support. All major exchanges see stable funding rates. In contrast to previous peaks accompanied by high funding and excessive leverage, the market now presents no such signs of overheating.

As CryptoQuant charts show, past funding rate spikes in early and mid-2024 preceded major corrections. Rates are now flat or slightly positive, indicating a more balanced market.

Bitcoin now has the ‘cleanest setup in years,’ said crypto analyst Quinten, with little leverage and low hype. That means the rally is not being driven by speculative excesses but by real demand.

This also means the risk of mass liquidations is reduced, which in turn increases price stability and gives the bulls more control over price movements.

Other than that, broader financial markets are clearly risk-averse. According to a tweet from Chamath Palihapitiya, U.S. money market funds now have a record $7.24 trillion parked in them.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only. And they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.