Bitcoin surged to new August highs as traders anticipated a possible trip to $120,000. A CME gap at $116,500 is being closely watched as a potential local low. The cryptocurrency reached $118,760 on Bitstamp, with $350 million in liquidations. Traders are bracing for a massive short squeeze that could lead to new all-time highs.

Analysts predict that Bitcoin could reclaim $117,200 as support, with a strong weekly close expected. A 10% upward move could trigger $18 billion in short liquidations. The target of $120,000 is supported by previous bull market patterns. Some traders are eyeing a CME gap at $116,500 for a potential price reversal.

Crypto investor Ted Pillows highlighted the significance of CME gaps in Bitcoin price action, noting a gap at $116.5K that is likely to be filled. Despite choppy weekend moves, focus remains on Bitcoin breaking $120,000 and nearing its all-time high. Ether (ETH) also hit multiyear highs, adding to the market excitement.

Read more at Cointelegraph: Bitcoin Targets $120,000 With a New Short Squeeze in Sight