Bitcoin is approaching a phase of 'price discovery' as it aims to break above $110,000, a key psychological level. A trader suggests that if Bitcoin bulls can liquidate $3 billion in short positions, it could lead to significant price increases. Closing above $102,400 would mark the highest monthly close in Bitcoin's history, reinforcing ongoing bullish momentum. Currently, Bitcoin is also at risk of triggering a 'liquidation magnet' for shorts above $107,000. Historical patterns indicate that recent price compressions may signal an impending breakout, reminiscent of the 2017 rally. Technical analysis shows that volatility is increasing, with a substantial number of short positions at risk of liquidation as Bitcoin moves towards its all-time high. This context positions Bitcoin for potential new highs in May 2025, further establishing its bullish market trajectory.

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