Bitcoin Surges Past $87K: Is a Breakout to $100K Inevitable?

Bitcoin’s price surpassed $87,000 with indications of a potential move toward $100,000. Key metrics show a Year-over-Year Realized Price at 61%, signalling market capitulation. Over $2 billion in short positions were liquidated, relieving bearish pressure. The formation of a ‘Power of Three’ pattern suggests institutional control and possible further upward movement, with ongoing analyses anticipating a sustained rally.

Bitcoin (BTC) has recently surged past $87,000, with implications that a breakout towards the $100,000 mark may be imminent. A downturn in the Year-over-Year Realized Price, now at 61%, indicates ongoing market capitulation, while the clearing of $2 billion in short liquidations from $82,000 to $88,000 has alleviated bearish sentiments. This price movement coincides with the formation of a ‘Power of Three’ (PO3) pattern, marking a critical resistance break.

Current analysis reveals a shift in the market structure towards accumulation, highlighted by a slight dip in the Realized Price since February 2025. Such a decline suggests that coins are migrating from holders with higher entry prices to newer investors, a sign indicative of capitulation. Despite the Year-over-Year Realized Price hovering at 61%, capital inflows have slowed notably compared to October 2024, signalling a persistent yet decelerated market entry of new capital.

Simultaneously, the MVRV ratio, which assesses speculative premiums, is compressing, indicating declining speculation and a return to core valuations. The total Year-over-Year return remains around 46%, indicating reasonable returns but shadowed by previous highs.

Recent findings from Alphractal’s liquidation heatmap demonstrate increased volatility in Bitcoin markets, highlighting significant short liquidations in the last week. This situation obliges traders who anticipated downward price movements to cover their positions, with liquidations clustering notably between $82,000 and $88,000. On April 21, over $2 billion worth of shorts were liquidated as BTC spiked, leading to an uptick in long positions at $86,000, with potential market dynamics shifting in bullish territory.

Bitcoin also recorded short liquidations over the past week, putting market makers at a crossroads regarding continued upward price pressure versus potential profit-taking. The equilibrium between these forces remains fragile, which could influence subsequent price movements. Positive price action has established a Power of Three formation, identified by trader Tardigrade on Bitcoin’s one-hour chart, consisting of accumulation, manipulation, and distribution phases.

The accumulation phase transpired when BTC consolidated between $84,000 and $85,500, succeeded by a manipulation phase marked by a brief dip to $83,950. However, a quick rebound saw prices rise above $87,000, indicating momentum from stronger institutional players. As Bitcoin crafts a base around $87,200, analysts observe the possibility of a continued rally towards $91,000 and the coveted $100,000 level, contingent upon sustained volume and accumulation.