Bitcoin has surged past $120,000, marking one of its strongest rallies in weeks after ETF flows flipped back into positive territory and the broader crypto market rebounded from U.S. government shutdown concerns.
For most of late September, Bitcoin ETFs were seeing consistent redemptions, with nearly $700 million in combined outflows between September 22-26. That trend reversed dramatically starting September 29, when funds registered inflows of $518 million, followed by $430 million on September 30. On October 1, momentum accelerated with $676 million in net inflows across major issuers, including BlackRock, Fidelity, and Ark Invest. This three-day streak marked the sharpest inflow recovery in weeks, signaling renewed institutional demand.
From $109K to $120K in Less Than a Week
Bitcoin was trading near $109,000 just days ago. The combination of ETF inflows and improving sentiment helped the asset climb more than $10,000 in under a week. The rally coincided with broader strength across the crypto market, triggered in part by relief following the temporary resolution of the U.S. government shutdown, which removed a major source of macro uncertainty.
Liquidations Add Fuel to the Rally
The price surge forced short sellers to unwind positions. In the past 24 hours alone, Bitcoin-related liquidations totaled $135 million, with $116 million coming from shorts and around $20 million from longs. The short squeeze effect provided further upward pressure, accelerating the climb to the $120,000 milestone.
Technicals Point Toward Bullish Continuation
Bitcoin currently trades at $119,974, up over 1% on the day. Technical indicators suggest strong momentum. The daily Relative Strength Index (RSI) stands at 65, showing bullish strength but still below overbought conditions. TradingView’s technical analysis summary signals a “Strong Buy,” with moving averages overwhelmingly tilted toward the bullish side (14 buys vs. just 1 neutral).
Market Outlook and Projections
If momentum persists, analysts see the next resistance zone forming around $123,000-$125,000, a level that could open the door to further gains if broken decisively. On the downside, support is building near $115,000, with a deeper retracement unlikely unless ETF inflows slow again.
The return of institutional demand through ETFs, combined with improving macro sentiment and heavy short liquidations, has put Bitcoin back on an aggressive bullish track heading into October.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/bitcoin-hits-120000-as-etf-inflows-surge-and-shorts-get-crushed/