Bitcoin briefly surged past $119,000 on Sunday, continuing a strong rebound after touching two-week lows near $114,500. The price action marked a notable shift in momentum, with bulls reclaiming key levels despite recent heavy selling pressure. Volatility Returns Near Weekly Close Data from Cointelegraph Markets Pro and TradingView revealed BTC/USD regaining strength as it attempted a daily close above the 10-day simple moving average. This movement came as investors digested easing tensions between the U.S. and China, following an agreement to delay the implementation of reciprocal tariffs. The renewed optimism supported a push above $118,000, prompting traders to focus on critical resistance levels heading into the new week. Crypto investor Ted Pillows emphasized the significance of the $119,500 threshold. “$BTC needs to break above $119.5K for a big move. If that doesn’t happen, this consolidation will continue,” he posted on X. “I think BTC could break above this level next month which will start the next leg up.” Reclaiming Lost Ground Analyst Rekt Capital pointed to Bitcoin’s recovery into its former trading range. “Bitcoin has Daily Closed above the blue Range Low, kickstarting a break back into the very briefly lost Range,” he shared alongside a chart analysis. “Any dips into the Range Low (confluent with the new Higher Low) would be a retest attempt to confirm the reclaim.” Despite the upward move, caution still lingered in the market. Trader CrypNuevo highlighted the potential for a further drop to fill the wick left on the daily chart. “If we zoom out, we can see that the main liquidation level is at $113.8k,” he explained. “Consequently, I consider the downside liquidation cluster to be the natural target in the mid-term ($114.5k–$113.6k).” Short Squeeze Risk Increases According to CoinGlass, short sellers may face increased liquidation risk if BTC climbs higher. The current “max pain” level for shorts is around $119,650. Should Bitcoin retest its all-time high near $123,000, total short liquidations could exceed $1.1 billion. Analysts now anticipate greater volatility in the coming days as the market approaches key price inflection points.
