Bitcoin Eyes Breakout as Trump Backs Crypto Bill

Bitcoin Eyes Breakout as Trump’s Crypto Push and Strategic Accumulation Signal Bullish Momentum

Bitcoin Rebounds as Market Eyes Next Breakout—Is a Bull Rally on the Horizon?

Bitcoin (BTC) has once again bounced higher, defying expectations of a local top and reigniting bullish sentiment across the crypto market. With an intraday rebound of 1.32% from its previous day’s close at $117,000, BTC surged past $118,100, driven by a powerful short liquidation and increasing institutional appetite.

This move isn’t just technical—it’s part of a broader trend unfolding around macro events, stablecoin flows, and renewed political interest in crypto regulation. As the dust settles, Bitcoin seems to be positioning itself for another leg up—potentially breaching key resistance levels in the coming days.

Let’s break down the key catalysts behind this momentum and why this consolidation phase might be more bullish than it appears.

$90M Short Squeeze Signals Strong Bullish Intent

Bitcoin’s recent jump was fueled in part by a $90 million short liquidation centered around the $118,139 price level. This squeeze added significant upward momentum, catching bearish traders off guard and accelerating the rally toward the next zone of liquidity.

Importantly, bulls are now targeting a key cluster of leveraged positions at $120,300, where approximately $44 million in liquidations are primed as the next magnet for price action, according to KriptoNovini.bg. This level could serve as the launchpad for Bitcoin’s next major breakout—if momentum holds.

However, market dynamics remain complex. A substantial $800 million outflow in Tether (USDT) raised eyebrows, suggesting a risk-off rotation might be in play. Yet, as we’ll see below, this may actually support the bull case if it’s part of a broader market repositioning.

Trump’s Crypto Pivot: GENIUS Act Brings Bullish Fuel

A surprising source of optimism in the crypto space is none other than former President Donald Trump. As part of what has been dubbed “Crypto Week,” Trump’s revived push for the GENIUS Act—a piece of pro-crypto legislation—is gaining traction once again.

Trump has publicly reaffirmed his support for the act, and reports suggest it may soon hit the floor of the House of Representatives. This renewed regulatory clarity has energized markets, with Bitcoin quickly reclaiming the $119,000 level on a 1.50% daily candle.

While skeptics warn this might be a dead cat bounce, data from Glassnode tells a different story. Roughly 196,000 BTC, equivalent to $23 billion, were purchased in the $116,000–$118,000 range during the recent dip. That’s nearly 8x more BTC accumulated than the amount realized in profits since Bitcoin’s all-time high (ATH).

This strong accumulation signals confidence from large holders, typically a precursor to breakout rallies—especially if accompanied by rising volume and sustained spot demand.

Accumulation Zones Point to Bullish Continuation

The concentration of large purchases at current price levels provides a key signal: smart money is buying the dip.

Accumulation zones like these have historically served as reliable floors for Bitcoin’s price, often preceding explosive moves to the upside. When layered with structural liquidity targets—like the $120K region—and external catalysts such as pro-crypto legislation, the stage could be set for a sustained rally.

Additionally, BTC’s market structure remains intact, with higher lows forming on key timeframes. This aligns with an accumulation phase that could evolve into a distribution rally—one where buyers outpace sellers until major resistance is broken.

What Stablecoin Outflows Are Really Telling Us

Eric Trump Backs TRUMP Memecoin: Trump Family’s Crypto Empire Power

While the $800 million outflow in USDT was initially interpreted as a sign of market de-risking, further analysis paints a more nuanced picture.

Instead of panic selling, this appears to be a strategic sidelining of capital—a temporary shift into stablecoins to wait out volatility. With net spot demand for BTC beginning to climb again, it’s increasingly likely that this capital is being rotated back into risk assets, primarily Bitcoin.

In other words, this isn’t fear—it’s precision. Traders are playing the chop, waiting for confirmation before redeploying funds.

The increase in spot buying also supports this narrative. As prices hovered near $118K, market depth and bid-side support noticeably strengthened, hinting that buyers are stepping in with conviction.

Technical Picture: Bitcoin’s Next Targets

From a technical perspective, Bitcoin is now eyeing several key resistance zones that align with both liquidity pockets and open interest clusters:

$120,300 – Heavy concentration of leveraged shorts; a likely near-term price target.
$123,500 – Previous supply zone and psychological barrier.
$128,000–$130,000 – Final hurdle before a retest of ATH.

If bulls can maintain pressure and breach the $120K level convincingly, it could trigger a cascade of liquidations and force sidelined capital to FOMO back in—creating the kind of momentum required for a breakout rally.

Macro Tailwinds and Market Sentiment

Beyond the charts and on-chain data, the macro environment is beginning to lean in Bitcoin’s favor.

Regulatory clarity is finally on the horizon, thanks to mounting bipartisan interest in crypto-friendly legislation like the GENIUS Act.
The U.S. presidential race is putting crypto front and center, with both parties acknowledging its growing economic significance.
Institutional interest continues to build, with asset managers and hedge funds increasing their crypto allocations amid inflation concerns and dollar devaluation.

These factors—combined with healthy technicals and bid-side support—are fueling a bullish shift in market sentiment, even as short-term volatility persists.

Is the Bottom In? Not Confirmed, But Strong Clues Say Yes

It’s still premature to declare a definitive bottom, especially in a market known for its fakeouts. However, multiple indicators point toward a high-probability floor formation:

Large-scale BTC accumulation in the $116K–$118K range
Short liquidation-driven momentum
Regulatory optimism via the GENIUS Act
Stabilizing stablecoin inflows
Rising spot demand on crypto exchanges

This convergence of factors doesn’t guarantee a rally, but it does suggest that Bitcoin’s downside risk is narrowing while the upside potential expands.

Final Thoughts: Setup Favors Bulls in the Short to Mid-Term

With market dynamics shifting and macro catalysts lining up, Bitcoin appears poised to test and potentially break through overhead resistance in the near term. The combination of:

Structural accumulation
Political tailwinds
Renewed spot demand
Technical liquidity targets

…creates a compelling bullish case. While caution is always warranted in crypto, the risk-reward profile is starting to tilt heavily in favor of bullish continuation.

Traders should watch for confirmation above $120,300, as a decisive break there could signal the next phase of Bitcoin’s climb—possibly back toward new all-time highs.

Key Takeaways:

$90M short squeeze helped fuel Bitcoin’s latest bounce.
Trump’s GENIUS Act revival adds bullish regulatory clarity.
196K BTC accumulated during recent dip—strong institutional demand.
$800M in USDT outflows more likely reflects temporary sidelining, not panic.
Break of $120,300 could trigger further upside with significant liquidity overhead.