Bitcoin bulls aim for $123,000 breakout as liquidation heatmap indicates more upside potential

Bitcoin (BTC) appears poised for a potential breakthrough as bullish investors target the $123,000 threshold, buoyed by increasing momentum and significant resistance levels that are fueling hope for further gains.

Following a period of consolidation near $112,000, the cryptocurrency community is closely watching Bitcoin’s next move. A clear breakthrough above resistance levels could trigger a bullish trend driven by robust on-chain data and ETF inflows.

Bitcoin is currently holding steady around $112,000, maintaining its bullish stance after reclaiming crucial resistance levels. The leading digital asset has seen modest gains in the last 24 hours, hovering near $112,700 as per Brave New Coin’s data.

The cryptocurrency is currently testing a vital resistance level at $112,000, with analysts like Crypto Caesar pointing out that a strong daily close above this mark could signal a bullish continuation towards $123,000. This aligns with Bitcoin’s broader ascending channel pattern, which continues to exhibit consistent higher highs and higher lows, underlining the robustness of the market structure.

Market volatility is on the rise as traders monitor a cluster of liquidation levels on both ends of the market. The liquidation heatmap indicates long liquidations around $109,000 and short liquidations near $111,500, highlighting potential areas of risk. The Fear & Greed Index currently sits at 30 (Fear), indicating cautious sentiment despite positive short-term signals.

Institutional interest and ETF flows are also lending support to Bitcoin’s bullish sentiment. On-chain data reveals increased institutional activity, including ETF inflows and whale accumulation, which are contributing to Bitcoin’s recovery post recent sell-offs. Demand for Bitcoin ETFs from BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund indicates growing investor confidence in digital assets through regulated investment vehicles.

Bitcoin’s market capitalization remains above $2.2 trillion, maintaining its dominance in the cryptocurrency market. Cumulative ETF inflows and accumulation by entities like MicroStrategy have helped stabilize prices within this range.

From a technical perspective, Bitcoin continues to respect its ascending channel, holding above crucial support levels between $111,800 and $112,000. Momentum indicators suggest a strong bullish momentum with a possibility of short-term consolidation before another upward move.

Analysts anticipate buying opportunities near $112,000–$112,500, targeting $114,800 → $116,000 → $118,000 in the short term, with a stop-loss below $111,000 for risk management purposes.

In conclusion, Bitcoin’s near-term trajectory hinges on a decisive breach above $112,000. A confirmed breakout could propel the cryptocurrency towards $123,000, while a failure to maintain support may lead to a temporary pullback before resuming the uptrend. Bitcoin’s technical outlook remains positive, supported by resilient demand, healthy on-chain metrics, and sustained institutional interest.