Bitcoin Soars Past $115,000: Inflation Relief and ETF Surge Fuel Rally Amid Bearish Warnings

Bitcoin just smashed through another psychological barrier—soaring past $115,000 as inflation fears ease and institutional money floods into ETFs.

Why the surge?

Inflation data came in softer than expected, giving traders the green light to pile into risk assets. Meanwhile, ETF inflows hit record levels—because nothing says 'financial innovation' like repackaging decentralized currency into traditional Wall Street products.

But not everyone's celebrating.

Bearish signals are flashing: overbought conditions, whale profit-taking, and rising leverage ratios suggest this rally might be running on borrowed time. Technical analysts point to diverging momentum indicators—classic signs that euphoria could be peaking.

Still, the bulls aren't backing down. They're betting that macro tailwinds and institutional adoption will keep pushing prices higher—even as skeptics warn that crypto's volatility hasn't exactly been tamed.

So, is this a breakout or a blow-off top? Only time—and the next Fed meeting—will tell.

Market analysts credited the upward move to different macroeconomic stability and institutional inflows. Bitcoin ETFs registered more than $928 million in inflows, reinforcing demand from both retail and professional investors.

Resistance Near $116K Raises Concerns

Despite the bullish wave, bitcoin faced resistance above $116,000, where sellers limited further gains. Analysts noted that rejection at this level emphasizes ongoing market caution. It is believed that the rally indicates renewed sentiment, but the rejection above $116,000 shows that sellers continue to be active.

Derivatives data echoed this caution. The weekly options expiry revealed a put/call ratio of 1.3, signaling that bearish bets slightly outweigh bullish positions. This trend suggests traders expect Bitcoin to remain range-bound, with probable moves limited between $111,000 and $116,000.

Meanwhile, CryptoQuant’s Bull Score Index showed that most market indicators, including the MVRV-Z score and stablecoin liquidity, have turned bearish. Analysts warn that a sudden shift in sentiment could trigger profit-taking and liquidations.

If Bitcoin achieves a sustained breakout above $116,000, analysts believe the next target could be $118,000, with strong support around $113,700. However, volatility remains a risk as traders wait for the Fed’s upcoming interest rate decision.

Adding to the positive outlook, Sean Ono Lennon, son of music legend John Lennon, recently praised Bitcoin as a hedge against “runaway money printing,” emphasizing its appeal as a scarce, decentralized asset during times of economic uncertainty.

For now, Bitcoin’s uptrend remains steady, but looming bearish signals and resistance levels could challenge the strength of the rally in the coming days, possibly leading to another dip below $110,000.

Cover image from ChatGPT, BTCUSD on Tradingview