Bitcoin Price Breakout: Could It Reach $144K Soon?

Bitcoin has recently broken out from a bullish pattern, prompting analysts to predict a rise to $144,000. A Golden Cross on the daily chart suggests a strong upward trend may be on the horizon. Positive signals from the derivatives market indicate the potential for short squeezes, while aggressive shorting in the market continues to pose risks for traders. A recent case highlights the danger of high-leverage shorts in uptrends, leaving short sellers vulnerable as Bitcoin prices climb.

Bitcoin’s price has recently surged following a breakout from a bullish pattern. Analysts are speculating that Bitcoin (BTC) might soon reach an astonishing $144,000 target. This possibility is backed up by historical trends and an ongoing shift in the long-to-short liquidation balance.

The latest rise is largely attributed to Bitcoin breaking out of a bull flag pattern, a continuation pattern which often indicates further price appreciation. Analyst Merlijn The Trader has highlighted a flagpole-to-breakout ratio that suggests a future BTC price of around $144,000. Following several weeks confined within a descending channel, the price began to rally, with the original flagpole formed during a previous rapid climb to $105,000.

After a period of consolidation between $98,000 and $102,000, Bitcoin has now established itself above the upper channel line. By measuring the breakout zone alongside the flagpole height, the target clearly stands at $144,000. This goal aligns robustly with significant Fibonacci levels and represents a key psychological target for bullish traders. As long as Bitcoin remains above this breakout level, the bullish trend should continue.

In a further positive sign, the daily chart for Bitcoin has recently revealed a Golden Cross, where the 50-day moving average has crossed above the 200-day moving average. This formation typically signals to long-term traders that an upward trend is likely. Analyst Greg Miller noted that a similar crossover had occurred back in Q4 of 2024, which resulted in a subsequent 60% rally after a short-lived 10% dip.

Miller observes that current indicators are echoing those pre-existing conditions.

He stated, “In Q4 2024, $BTC dropped 10% and then rallied 60%. Currently, we just witnessed a 10% downward move following our Golden Cross in Q2 2025. If trends from history repeat, we might be on the brink of a significant rally. I’m confident Bitcoin will surpass $130,000 by Q3 2025.”

Furthermore, the information from the derivatives market is lending additional weight to the bullish narrative. Analyst Cas Abbé pointed out the possibility of a short squeeze due to an existing liquidation imbalance, explaining that a mere 10% rise in Bitcoin’s price could trigger the liquidation of over $15.11 billion in short positions. By contrast, a 10% drop would only threaten about $9.58 billion in long liquidations, suggesting a crowded short market.

Last week, the funding rate turned negative, indicating that bears were in the driving seat—a scenario often preceding bullish rallies. A dominance of short positions typically incentivises bulls to push prices higher, endeavouring to force shorts into losses. Abbé warned that should Bitcoin prices cross the $110,000 mark, many short positions could be liquidated, which might significantly increase market volatility and propel BTC closer to $144,000.

However, despite the mounting bullish indicators, traders continue to position themselves aggressively in the short market. One notable case involved trader James Wynn, who after receiving a referral bonus decided to short Bitcoin using 40x leverage. Unfortunately, procedures compelled him to liquidate his position within hours due to the rapid price movements. According to Lookonchain data, Wynn initially received 481.42 in bonuses but ended up losing $113.55 from his ill-fated trade.

The recent narrative indicates that many time strong shorting trends emerge at peak moments, thus being particularly hazardous. Wynn’s situation exemplifies the risks associated with betting against bullish signals and trend breakouts. High-leverage shorting in confirmed uptrends presents distinctive dangers and can lead to heavy losses.

Ultimately, stories like Wynn’s depict the high-stakes nature of retail short selling. They underscore that Bitcoin is still facing substantial speculative short selling, and should this continued selling pressure persist, we might soon witness Bitcoin surpass $110,000 with the potential to rally toward $144,000.