- Bitcoin’s price surged to $108,000, its highest level in four months and just 1% below its ATH of $109,114.
- Key support levels stand at $105,565 and $104,068, with a breakout possibly driving BTC toward $110K.
Bitcoin (BTC), the world’s biggest cryptocurrency has once again grabbed headlines after crossing the $108,000 zone, its highest level in nearly four months. This latest rally comes close to BTC’s all-time high of $109,114 set back on 20th January 2025, signalling a renewed market optimism.
In the last 24 hours, Bitcoin jumped by 3.66%, climbing from a low of $104,206 to an intraday peak of $108,024. That’s just around 1% away from its record high. This move comes after BTC broke through a major resistance level of $97,625 earlier this month on May 7. Since then, it has been steadily climbing without any significant setbacks, showing strong bullish sentiment among investors.
At the time of writing, Bitcoin is trading at $106,342 with a total market cap of $2.11 trillion. On the weekly chart, BTC has gained around 3% and over the past month, it’s up by more than 22%.
On-chain data also supports the bullish narrative. Bitcoin’s supply on exchanges has now dropped to just 7.1%, the lowest level since November 2018. This decline suggests that more investors are pulling their BTC off exchanges for long-term storage, indicating growing confidence in the asset’s future price potential.
Meanwhile, Bitcoin ETFs continue to attract capital. As of May 20, U.S. based Bitcoin ETFs recorded net inflows for the fifth consecutive day with $329.02 million coming in. Cumulatively, the total net inflow into these ETFs stands at an impressive $42.77 billion, highlighting sustained institutional interest.
Bitcoin Technical Analysis Hints Bullish Trend
Bitcoin had briefly dipped below $75,000 in early April due to global market uncertainty. However, tensions have eased as former President Trump recently pulled back on proposed trade tariffs and hinted at trade agreements with U.S. allies. These developments have helped improve market sentiment, giving Bitcoin an additional push.
On the technical front, the 4-hour BTC/USDT chart on Binance shows a clear uptrend with the price forming higher highs and higher lows within an ascending parallel channel. Currently, Bitcoin is trading at around $106,483, just below the recent high of $107,985. The price is consolidating near the upper boundary of the channel, which often acts as a resistance zone. A breakout above this level could signal further bullish continuation, potentially aiming for the $110,000 zone.
Fibonacci retracement levels plotted from $97,732 to $107,985 indicate that the price is holding well above the 23.6% retracement level at $105,565, showing strength and buyer interest even during pullbacks.
Zooming in, the RSI is at 59.46, reflecting mild bullish momentum with room for further upward movement, while the MACD also supports this outlook with a bullish crossover and positive histogram values. The key support levels resting at $105,565, $104,068 and $102,858. As for resistance, $108,000 remains the key area to break in the short term.
However, the market isn’t without risk. Liquidations have picked up in the past day with over $250 million wiped out from the market. Of that, Bitcoin accounted for around $71.61 million, while Ethereum saw the highest liquidations at $74.15 million, largely from overleveraged long positions.
