Bitcoin Hesitation: Overwhelming Short Positions and Potential Plunge to $100,000
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In a recent article penned by Bitcoin and blockchain technology specialist Charles Ledoux, the future potential of the world's largest cryptocurrency is discussed. With over 2000 articles under his belt and numerous masterclasses to his name, Ledoux offers a comprehensive analysis of the factors driving Bitcoin's breakout in 2025.
Key Factors Supporting Bitcoin's Breakout
Institutional demand has played a significant role in Bitcoin's growth, with the approval and popularity of spot Bitcoin ETFs since 2024 attracting over $14 billion in inflows. This increased legitimacy and steady capital has contributed to the rise in Bitcoin's value.
The 2024 Bitcoin halving also played a crucial part in creating scarcity, which historically precedes bull runs. This reduction in new coin issuance has made Bitcoin more valuable, contributing to its breakout potential.
Macroeconomic tailwinds, such as Fed rate pauses or anticipated cuts, global liquidity expansions, and Bitcoin's role as an inflation hedge, have further enhanced bullish sentiment.
Technical Indicators Pointing Towards a Breakout
Technical signals also support a move into uncharted territory for Bitcoin. The cryptocurrency has breached the psychological and technical resistance at $110,000 and held its price above the crucial support level at $117,000.
AI and quantitative signals, such as Token Metrics’ AI turning bullish on June 28, 2025, indicate strong momentum shifts with Bitcoin surging past $118,000 and maintaining strength thereafter.
On-chain metrics, like high whale accumulation and positive MVRV ratios, reflect strategic buying and reduced sell pressure. Additionally, the Volume Profile indicates a strong demand zone between $106 and $100,000, offering potential supports for Bitcoin if it loses the $117,000 level.
Price Targets and Future Valuations
Analysts are considering price targets ranging from $130,000-$250,000 by late 2025. Some even forecast higher long-term valuations based on Bitcoin's growing status as "digital gold" and a reserve asset. However, short-term risks such as inflation fears and volatility-driven corrections persist.
In the coming days, the crypto market will be closely watching the Fed's rate announcements in September, as they could significantly impact Bitcoin's price action.
Recent Developments and Potential Long Setups
Bitcoin has reached a new all-time high of $124,000 and is currently holding above its CME gap and its 20-day moving average at $117,000. A Bitcoin price at $103,000 could offer an interesting long setup if the 12H RSI is in oversold territory and the 4H RSI shows bullish divergences.
The "God Mode" signal, a result of many whales placing massive shorts on Bitcoin in recent days, could indicate a massive long liquidation in the coming weeks.
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The article was updated on 16/08/2025 at 08:33 by Charles Ledoux. The recent price stability of Bitcoin suggests a potential launchpad for the next phase of growth. However, the coming days are crucial for Bitcoin and the crypto market as they prepare for the Fed's rate announcements in September.
At the Crypto Academy, students can learn about finance, investing, and technology by studying the case of Bitcoin's breakout in 2025. Factors such as institutional demand, the 2024 Bitcoin halving, and macroeconomic tailwinds contributed to this breakout.
The future potential of Bitcoin as a reserve asset and inflation hedge has analysts predicting price targets ranging from $130,000-$250,000 by late 2025. Technology like AI and quantitative signals are even suggesting stronger momentum and higher long-term valuations for this cryptocurrency.
