Bitcoin (BTC) Price Prediction & Analysis: Bulls Eye $110,000 After Historic Daily Close

TLDR

Bitcoin recently reached a record daily close of $106,830 BTC is currently trading around $105,300 after briefly touching $107,000 Market dynamics could amplify price movements above $110,000 level Funding rates remain moderate, suggesting a more mature bull market Technical indicators show mixed signals with some bearish divergence

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The Journey to Record Highs

Bitcoin is once again testing all-time high territory as it trades near $105,000, following a record daily close of $106,830. The price has surged more than 40% since early April, pushing toward the $109,000 mark in recent days.

The bullish move came as investors added capital to spot exchange-traded funds (ETFs). This increased investment has helped drive Bitcoin’s price to these new heights.

Data from TradingView confirms that Tuesday’s candle ended (UTC) at $106,830, marking the highest daily closing price in Bitcoin’s history.

Bitcoin Price on CoinGecko

The Coinbase Bitcoin Premium Index has remained positive during this climb. This metric measures the price difference between Coinbase Pro and Binance, and suggests persistent buying pressure from U.S.-based investors.

Markets have been reacting to bond market volatility that points to concerns about fiscal health in major economies, including the United States.

Analysts have noted that these fiscal concerns could be beneficial for Bitcoin and other assets such as gold.

Technical Signs and Market Structure

While the price shows strength, some technical indicators suggest caution for Bitcoin bulls.

The cryptocurrency has been trading within a parallel channel pattern for several months. BTC has recently moved to the upper trendline of this pattern, which served as resistance during previous tests.

The Relative Strength Index (RSI) is showing bearish divergence from Bitcoin’s price action. While BTC has continued to climb, the RSI has formed a lower high, which often signals slowing momentum.

Is it time for new #Bitcoin $BTC all-time highs? Here’s what to watch:

• Price at major resistance
• Hanging man candlestick pattern
• Bearish RSI divergence
• MACD bearish crossover

Momentum is stalling. Caution is warranted! pic.twitter.com/ItUfhuPHEt

— Ali (@ali_charts) May 20, 2025

Additionally, the Moving Average Convergence/Divergence (MACD) indicator recently showed a bearish crossover, with the MACD line dipping below the signal line.

On the 4-hour chart, Bitcoin is forming a tight range between $103,600 and $105,500. The $103,600 level has acted as support for multiple bounces in recent days.

The 200-period moving averages continue sloping upward, reflecting the strength of the ongoing uptrend. Bitcoin remains well above both the simple and exponential moving averages, showing that the macro trend remains intact.

Signs of a Maturing Bull Market

Unlike previous bull markets, this rally shows signs of greater maturity and stability.

Funding rates in the derivatives market remain moderate despite the price increase. In past cycles, approaches to all-time highs were typically accompanied by overheated funding rates that signaled excessive leverage.

Buy volume on major exchanges like Binance has actually been trending downward during this push higher. While this might appear as weak momentum, it could indicate a more sustainable rally.

This divergence between price strength and cooling market metrics has divided analysts. Some view this as evidence of a healthier bull market less driven by short-term speculation.

Volume has declined slightly during the consolidation phase, suggesting traders are waiting for confirmation before making substantial moves.

Key Levels to Watch

The $110,000 level represents an important threshold for Bitcoin’s next move. Data from Deribit’s options market shows dealers hold large “negative gamma” exposure at this level.

This market structure means that if Bitcoin breaks above $110,000, the rally could accelerate as dealers hedge their positions. Market makers typically trade in the direction of the market to maintain neutral exposure, which can amplify price movements.

Resistance remains strong between $105,000 and the previous all-time high near $109,000. These liquidity clusters could either absorb buying pressure or trigger an explosive breakout.

On the downside, bulls must defend the psychologically important $100,000 level to maintain the current bullish structure and avoid further retracement.

The market now appears to be coiling for a major move. Whether that means new highs or a pullback, the next few days will be crucial for Bitcoin’s price direction.

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