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Bitcoin Bulls Eye $120,000 – Will Falling Funding Rates Trigger The Next Breakout?

Ash Tiwari
by Ash Tiwari
2 months ago
·
Posted in Bitcoin News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

After a short weekend dip, Bitcoin (BTC) is back on track, continuing to follow both the increase in M2 global money supply and the Wyckoff Accumulation pattern. While some analysts predict BTC may reach a new all-time high of $120,000 in the coming weeks, declining funding rates are raising some caution.

Bitcoin To Hit $120,000 Soon?

In an X post published today, seasoned crypto market commentator Ted Pillows noted that Bitcoin remains in sync with the Wyckoff Accumulation pattern and is tracking the growth in global M2 money supply.

Related Reading: Bitcoin Successfully Retests Bullish Megaphone Pattern – Is A Breakout Imminent?

For the uninitiated, The M2 global money supply refers to the total amount of money in circulation worldwide, including cash, checking deposits, and easily convertible near-money like savings deposits. It is a key indicator of global liquidity and central bank monetary policy, often used to assess inflation risk and economic growth potential.

The analyst shared the following chart, showing M2 money supply growth (in white) leading Bitcoin’s price action (in blue). Based on the chart, BTC may climb to $120,000 in the coming weeks and potentially as high as $153,000 by October 2025.

ted
Source: Ted on X

Fellow crypto trader Merlijn The Trader echoed Ted’s view, stating that BTC is “playing out the classic Wyckoff script.” Following April 2025’s false breakdown that saw BTC tumble to $75,600, the digital asset is now entering the “liftoff” phase, which typically features strong upward price movement.

BTC Funding Rates Decline On Binance

While the Wyckoff pattern suggests further gains for BTC, exchange data shows a different story. Specifically, funding rates on Binance indicate growing short interest among traders.

Related Reading: Bitcoin Flashes Rare Signal That Could Trigger Drop Below $40,000, Analyst Warns

According to a CryptoQuant Quicktake post by contributor BorisVest, a significant number of traders are betting against the rally. However, if BTC’s price continues to climb, these traders may be at risk of liquidation.

cq1
Source: CryptoQuant

The analyst noted that a mismatch between funding rates and price action often triggers forced short liquidations or margin calls. Both outcomes can amplify upward momentum in price.

Since Binance is the largest crypto exchange by trading volume, its funding rates often serve as a proxy for broader market sentiment. BorisVest explained:

As Bitcoin continues to rise, these shorts face growing pressure and are gradually forced out of the market – either through liquidations or margin calls. This process accelerates the bullish momentum, creating a feedback loop that pushes prices even higher.

That said, the strong June 2025 US employment data showed no signs of economic weakness, reducing the likelihood of a near-term rate cut from the Federal Reserve, which could weigh on risk-on assets like Bitcoin. At press time, BTC trades at $108,435, down 0.4% in the past 24 hours.

bitcoin
Bitcoin trades at $108,435 on the daily chart | Source: BTCUSDT on TradingView.com
Featured image from Unsplash.com, charts from CryptoQuant, X, and TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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