Bitcoin (BTC) Price Surged Past $100,000 on May 8, Reaching This Threshold for the First Time in Months

Bitcoin price rose above $100,000 again on May 8, reaching this threshold for the first time in months, data from Binance showed. At the time of press, BTC was trading at $103,771, showing a 0.75% increase over the last hour and a 7.05% gain over the last seven days.

The world’s leading cryptocurrency is now just 4.9% below its record high of $109,114, which it reached in January. After weeks of trading between $93,000 and $98,000, the recent upward move was triggered by a series of short liquidation events on Binance, according to CryptoQuant contributor Amr Taha.

A large cluster of short positions had been accumulating over recent days, setting the stage for a short squeeze, with the first large-scale liquidation event occurring at the $97,000 level.

At this stage, approximately $360 million in short positions were liquidated, forcing traders who had bet against Bitcoin to close their positions as the price broke through the expected ceiling. This, in turn, pushed the price even higher, leading to further liquidations.

Bitcoin Price Surges Through Key Levels

Bitcoin then briefly stalled in its ascent below the $101,000 handle. However, the cryptocurrency encountered another wave of liquidations once the price exceeded that mark, clearing an additional $240 million in shorts.

This second round of forced closures at the $101,000 level propelled the price toward the $104,000 range.

Amr Taha highlighted that Binance’s liquidation heatmaps had shown high activity zones at both $97,000 and $101,000. These levels attracted heavy liquidations, confirming those areas were key for triggering a stronger price breakout.

Moreover, alongside the price movement, Binance’s funding rate turned positive after a wave of liquidations. Earlier it had been negative, which means traders were paying to bet against Bitcoin. But after the liquidations, it went up to +0.01%, which signals stronger demand for long positions.

This shift indicates traders may be gaining short-term confidence in a price rebound, which could sustain the bullish bias.

Another CryptoQuant analyst, burக்கemeci, adds that the Bull-Bear Market Cycle indicator is showing signs of a Bitcoin trend reversal.

“With Bitcoin surging back above $100K, the indicator has started flashing bullish signals again. Though the current signal is still minor, with a coefficient of 0.029,” the analyst stated.

The indicator measures long-term and short-term market trends by comparing price momentum with investor behavior through the 30-day and 365-day moving averages. A strong uptrend is spotted when the short-term average crossess the long-term average.

It also takes into account the 30-day average’s slope. A steeper slope indicates more strength in the current trend.

The analyst pointed out that the 30-day average is beginning to slope upwards, which could be a prelude to a cross above the 365-day average. This eventuality could herald the commencement of a strong upward phase, aligning with the patterns observed in prior cycles.

These technical signals and market reactions together point to renewed optimism among traders and analysts. While the positive funding rate and liquidation-driven surge indicate confidence, the appearance of a bullish shift in the market cycle indicator adds weight to expectations of more gains ahead.