Bitcoin ready to ‘vaporize’ shorts once price discovery above $110K begins

Key takeaways:

• An end-of-month Bitcoin price close above $102,400 would set the highest monthly close ever, proving the bull market continues at a rapid pace.

• Over $3 billion in Bitcoin short positions are vulnerable above $107,000, creating a “liquidation magnet” that could send BTC price to new highs.

Bitcoin (BTC) is 11 days from potentially setting its highest monthly candle close in history. After achieving a record weekly close of $106,407 on May 18, BTC could secure a new monthly high by closing above $102,400 this month.

With respect to its current market trend, Bitcoin is inches away from a “price discovery” period, as noted by crypto trader Jelle.

Price discovery in this context refers to the process where buyers and sellers interact at an undefined or non-traded range to determine the market price of an asset.

A break above Bitcoin's all-time high of $110,000 would initiate a price discovery phase, driving BTC into an uncharted trading range with successive higher highs until market participants establish a new equilibrium between supply and demand.

Cointelegraph reported that Bitcoin is close to confirming a “golden cross” on its daily chart, which has historically preceded 45% to 60% price rallies. Such a move coincides with the probability of BTC hitting new highs this month.

A monthly close near $110,000 would mark a 15% to 17% gain for Bitcoin in May, its strongest May performance since 2019. This would significantly surpass the historical average monthly return of 8% for the month.

Related: Bitcoin is signaling a golden cross — What does it mean for BTC price?

Bitcoin researcher Axel Adler Jr. has noted a key technical pattern in Bitcoin’s current bull cycle, pointing to three recent instances of “compression” — a period of tightening price ranges — measured by rolling maximum/minimum over 180 days.

The chart indicates that this compression often signals an impending breakout, with historical precedent set by the 2017 rally when Bitcoin surged to $20,000 from $1,000.

Using Bollinger Bands alongside the price range suggests that volatility is building within the current cycle. The third compression phase in 2025 mirrors the 2017 cycle, where the Bitcoin halving events and supply shocks fueled retail FOMO, driving major price rallies.

From the vantage point of Bitcoin liquidation, over $3 billion in short leveraged positions are at risk of being liquidated if BTC price moves to $110,000 from $105,000. In contrast, it would take a drop to $94,612 to trigger a similar amount in long liquidations. This skew suggests a higher probability of the price pushing upward to chase liquidity on the sell-side rather than dropping lower.

Technical analyst Gert van Lagen noted a similar outlook, stating,

Related: Bitcoin trading in six-figure territory shows BTC is ready to carry gold’s ‘baton’ — Fidelity exec

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.