Bitcoin traders are optimistic about a potential short squeeze, indicating predictions for Bitcoin (BTC) to hit $120,000 following recent price increases. As BTC prices reach new highs for August, strong liquidations were recorded over the weekend, with a total of about $350 million in the crypto market. Analysts predict that just a 10% price gain could lead to over $18 billion in short liquidations, thus fueling further bullish sentiment. Popular traders anticipate a brief cooldown may occur Monday, but expect a rally that could push BTC above $120,000. Additionally, there is speculation about a CME gap around $116,500 that could be filled during price corrections before the next major upward movement. With BTC on the brink of reclaiming crucial support levels and the largest liquidity pool available, traders are closely watching for breakout opportunities. The sentiment is high as market dynamics shift, with many predicting that BTC could soon reclaim its all-time highs next week.

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