Following a bullish reversal, Bitcoin is on the cusp of breaking to a new all-time high, with it now just 1.5-2% away from the previous high of $109,114.88, set on January 20, 2025. As the bullish momentum builds, analysts and traders are speculating whether Bitcoin could surpass this peak within the week and potentially enter into the price discovery era.
At the time of writing, Bitcoin is trading at $107,836, up 2.11% in the past 24 hours. Although trading volume decreasing 3.79% today, the bullish momentum seems to be not stopping with the BTC briefly hitting $108K on leading crypto exchanges.
The current market rally is also partially fueled by the anticipation around U.S. President Donald Trump’s crypto dinner party, which is to be held on Thursday, May 22.
As per Sosovalue data, the U.S. spot Bitcoin ETFs have seen net inflows exceeding $2.8 billion in the first half of May. Additionally, the continued buying spree from Strategy (MicroStrategy) is further bolstering the market sentiment. All these market dynamics suggest a strong institutional and retail demand for Bitcoin, essentially pushing it towards a new all-time high.
Can Bitcoin break to a new all-time high this week?
The recent market data from Glassnode indicates a surge in Bitcoin accumulation, with a heatmap transitioning to red and signaling robust market confidence. Historically, such trends have preceded significant price rallies.
Besides, the technical indicators are also equally optimistic, with Bitcoin’s open interest in futures markets hitting an all-time high of $76.20 billion on May 21, up nearly 30% in the past 30 days.
The increase in open interest usually suggests increased demand for leveraged positions and traders speculating on drastic price movements for the near future.
Analysts note a repetitive breakout pattern on Bitcoin’s four-hour chart, with the asset forming higher ranges, potentially targeting $110,000-$116,000 if it clears key resistance levels around $106,000-$107,000. However, some caution that profit-taking near $106,000 or a bearish divergence could delay the breakout.
Despite the bullish outlook, retail investor participation remains low, with Google search volumes for Bitcoin near six-month lows. Historically, retail interest peaks a week after new highs, which could amplify momentum if Bitcoin breaks through.
Also read: Ramaswamy’s Strive Seeks 75,000 Bitcoin From Mt. Gox Claims
