Bitcoin Nears ATH: $110K Breakout Imminent?

Bitcoin’s price action is flirting with all-time highs—again. After months of sideways movement, the king of crypto is making traders sweat as it inches toward the $110K threshold.

Market sentiment? Greedy as a hedge fund manager at a private island auction. Technical indicators suggest bullish momentum, but let’s see if Wall Street ’experts’ can resist dumping their bags on retail this time.

One thing’s certain: if BTC punches through this resistance, the FOMO will be louder than a CNBC anchor during a market crash.

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, it’s feasible that a new all-time high could be in play in the coming days. 

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