Bitcoin Tests All-Time Highs Near $122,000, Eyes $126,000 as Key Level

Introduction

On August 13, 2025, Bitcoin (BTC) surged past $122,000 during the Wall Street open, approaching its all-time high, driven by institutional demand and over $500 million in crypto market liquidations, primarily short positions. Popular trader Rekt Capital identified $126,000 as a critical price point for Bitcoin to enter sustained price discovery, with $120,000 now acting as support after a bull flag breakout. Ether (ETH) also neared its December 2021 peak, trading within $150 of new all-time highs, fueled by a $20 billion ETH purchase announcement from BitMine and strong Coinbase institutional volume. While bullish momentum is evident, the article’s focus on liquidations and institutional hype may overstate short-term gains, raising questions about sustainability amid macroeconomic uncertainties.

Key Points

• Bitcoin Price Action: BTC/USD hit $122,000, up 1% in 24 hours, before cooling, facing resistance near its all-time high. CoinGlass reported $500 million in crypto liquidations, with Bitcoin shorts heavily impacted.

• Technical Analysis: Trader Rekt Capital noted Bitcoin’s breakout from a bull flag, confirming $120,000 as support. The $126,000 level is deemed “pivotal” for new all-time highs, with no major liquidity clusters nearby to dictate short-term moves.

• Ether’s Parallel Surge: ETH/USD reached its highest level since December 2021, trading at approximately $4,500, less than $150 from its all-time high. Institutional interest, including BitMine’s $20 billion ETH fundraising, drove momentum.

• Institutional Demand: Institutional traders accounted for 75% of Coinbase’s trading volume on August 12, 2025. U.S.-based spot Bitcoin ETFs saw $1.04 billion in inflows in July 2025, per Farside data.

• Market Sentiment: Trader Daan Crypto Trades suggested Bitcoin remains range-bound, with a breakout or sideways consolidation likely. Altcoins are drawing attention, potentially diverting liquidity from Bitcoin.

Critical Analysis

The article paints an optimistic picture of Bitcoin’s push toward new highs, but several aspects of its narrative and the broader market context require scrutiny:

• Liquidation-Driven Rally: The $500 million in liquidations, while significant, is a small fraction of Bitcoin’s $2.4 trillion market cap (as of August 13, 2025). The article’s emphasis on short liquidations suggests a short squeeze, but historical data shows such events often lead to corrections, as seen in Bitcoin’s 8% drop after a July 2025 peak of $112,000. The lack of nearby liquidity clusters, as noted by Daan Crypto Trades, reduces the likelihood of an immediate squeeze, tempering bullish expectations.

• Technical Levels and Speculation: Rekt Capital’s $126,000 pivot point is plausible, aligning with prior resistance zones, but the article overstates its certainty. Bitcoin’s failure to break $109,500 in June 2025, despite similar institutional hype, suggests resistance could persist. The bull flag breakout is bullish, but the article omits downside risks, such as a potential CME gap fill at $117,000, as flagged by traders on X.

• Institutional Narrative: The article highlights BitMine’s $20 billion ETH purchase and Coinbase’s institutional volume but lacks context on their impact. BitMine’s fundraising is speculative and unconfirmed, and institutional ETF inflows ($1.04 billion in July) are modest compared to Bitcoin’s market cap. The article also ignores retail sentiment, with the Crypto Fear & Greed Index at 71 (“Greed”), indicating potential overcrowding, as seen in June and July 2025 price drops after similar spikes.

• Ether’s Role: The article ties Ether’s surge to Bitcoin’s momentum but underplays competitive dynamics. Altcoins, including ETH, are drawing trader focus, potentially capping Bitcoin’s upside. ETH’s $4,631 support level, as noted by Rekt Capital, is critical, but its 54% year-to-date lag behind Bitcoin’s 104% gain suggests weaker fundamentals. The article’s bullish framing of ETH’s $150 gap to all-time highs ignores risks like the $1.5 billion Bybit hack in February 2025, which hit ETH harder.

• Macroeconomic Oversights: The article mentions institutional demand but omits macroeconomic risks, such as escalating NATO-Russia tensions flagged by QCP Capital, which could disrupt risk assets. Bitcoin’s resilience to Middle East ceasefire news in June 2025 is noted, but the article downplays how trade tensions or Federal Reserve policy shifts could trigger volatility, as seen in Bitcoin’s 8% dip in July 2025.

• Regulatory Context: The article’s silence on regulatory shifts is notable, given our prior discussions on the SEC-Ripple case and Tornado Cash. The Trump administration’s crypto-friendly policies, including dropped SEC enforcement actions, likely bolster institutional confidence, but potential reversals under future administrations could cap long-term gains.

Supporting Data

• Price Data: Cointelegraph Markets Pro and TradingView reported BTC/USD at $122,000 (1% daily gain) and ETH/USD at ~$4,500. Bitcoin’s all-time high was $122,000, ETH’s $4,631.

• Liquidations: CoinGlass data showed $500 million in 24-hour crypto liquidations, with Bitcoin shorts dominant. $5.6 billion in BTC shorts are at risk if Bitcoin hits $125,000.

• Institutional Flows: Farside data confirmed $1.04 billion in Bitcoin ETF inflows in July 2025. Coinbase reported 75% institutional volume on August 12. BitMine’s $20 billion ETH fundraising was announced but unverified.

• Technical Levels: Rekt Capital identified $120,000 as Bitcoin support and $126,000 as resistance. ETH’s $4,631 support aligns with its December 2021 peak.

• Market Context: Bitcoin’s 104% yearly gain outpaces ETH’s 5.9%, per Cointelegraph Markets Pro. The Crypto Fear & Greed Index hit 71, signaling greed.

Conclusion

Bitcoin’s push past $122,000 and Ether’s climb toward $4,631 reflect strong institutional demand and technical breakouts, with $126,000 as a key pivot for BTC. However, the article’s focus on liquidations and institutional hype overstates short-term bullishness, ignoring risks like macroeconomic volatility, altcoin competition, and speculative sentiment. While the Trump administration’s regulatory leniency supports momentum, Bitcoin’s range-bound behavior and ETH’s lag suggest caution. Traders should monitor $126,000 for BTC and $4,631 for ETH, but potential CME gap fills or geopolitical shocks could disrupt the rally.