Bitcoin Price Targets $110K Amid ETF Surge and Short Squeeze Risk
BTC-USD Builds Bullish Structure as Institutions Accumulate, Shorts Stack | That's TradingNEWS
Bitcoin Approaches $110K: Bullish Structure Builds Underneath
Bitcoin (BTC-USD) climbed to $108,220 as of the latest session, putting it within striking distance of the critical $110,000 resistance. The rally has been supported by consistent ETF inflows and declining exchange reserves, yet traders remain cautious as open interest and liquidity heatmaps show whales and institutions building heavy positions just below resistance.
ETF Inflows Accelerate as Spot Supply Tightens
U.S. spot Bitcoin ETFs recorded $294 million in cumulative inflows this week, with BlackRock’s IBIT and Fidelity’s FBTC leading net additions. Daily flows have steadily risen since mid-June, reversing the outflows that capped upside near $105,000. This supply absorption has intensified pressure on the short side, with Glassnode reporting BTC balances on exchanges have dropped to a 5-year low.
Shorts Stack Around $110K: Squeeze Setup in Motion
Data from Hyblock Capital shows a liquidity cluster between $109,500 and $111,200, where overleveraged shorts are concentrated. The market has repeatedly rejected the $110,000 zone, but each test leaves more aggressive short positioning behind. This creates a layered short squeeze risk: any breakout above $110K could send BTC rapidly toward $115,000 or $120,000 as stops trigger en masse.
Technical Levels: Tight Coil Between $107K Support and $110K Barrier
Bitcoin’s 4H chart reveals a narrowing ascending triangle, with support around $107,200 and higher lows forming consistently since June 21. RSI hovers near 65—bullish but not overheated. If the $106,800–$107,200 range holds, bulls may push for a breakout before July begins. Failure to hold this zone could send BTC back to the $104,300 liquidity pocket, where bids remain strong.
Institutional Flows Point to Long-Term Accumulation
Coinbase Prime and Bitwise wallets show growing long-only interest, particularly from U.S. asset managers rotating capital from altcoins into BTC. Derivatives data backs this up: funding rates remain positive but not extreme (+0.012%), and OI has risen 8% in the past 48 hours without heavy long liquidation—indicating smart money is still in accumulation mode.
Volatility Compression Signals Impending Expansion
The Bollinger Bands on the daily chart are at their tightest since late May—just before BTC jumped from $67K to $74K. Historical volatility dropped to 22%, a compression level that typically precedes large directional movement. With macro catalysts including upcoming U.S. ISM and employment data, the setup favors explosive price action as soon as a catalyst hits.
Final Verdict: Bitcoin (BTC-USD) – BUY if Breakout Confirmed
Bitcoin is consolidating under major resistance with bullish structure, growing ETF inflows, and short squeeze pressure. A confirmed close above $110,500 could open a swift rally toward $120K. Downside is cushioned by spot demand near $106,800. Rating: BUY on breakout, with a first target of $118,000 and secondary extension to $130,000 if volume expands. Risk below $104K remains contained unless ETF flows reverse.
