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.

The post Bitcoin Hits $120,000 as ETF Inflows Surge and Shorts Get Crushed appeared first on Coindoo.

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Filed under: Bitcoin - @ October 2, 2025 4:06 pm