Bitcoin Bulls Charge Past $110K—Could $120K Be Next?

Bitcoin hit a historic milestone on Wednesday, breaking above $109,000 as bullish momentum continued to lift cryptocurrencies and other risk-on assets.

Propelled by favourable macroeconomic conditions and renewed investor appetite, the world’s largest cryptocurrency surged to an intraday high of $110,724.46 before settling at $109,728.61.

At the time of writing, Bitcoin was trading at $109,678.08.

Over the past 24 hours, it climbed 2.83%, and it’s up 5.75% for the week, according to CoinMarketCap.

This rally was not just about price.

On-chain metrics also hit fresh records.

Bitcoin’s total market capitalisation reached an all-time high of $2.17 trillion, while its realised cap—an alternative valuation that reflects the aggregate price at which coins were last moved—hit $911.5 billion, according to data from Glassnode.

Joe DiPasquale, CEO of crypto asset manager BitBull Capital noted:

"Bitcoin is pushing toward new highs with strong tailwinds behind it—from steady ETF inflows to a broader shift in political tone. We're seeing growing institutional interest and renewed risk appetite across the board."

He added optimistically:

"This doesn’t feel like a short-term squeeze—it’s a more sustained bid that reflects a structural shift in how investors are viewing Bitcoin. It’s moving from a speculative trade to a strategic allocation, increasingly seen as a macro asset with long-term relevance, not just a bet on tech or hype cycles."

Why is BTC on the Rise?

Bitcoin’s latest surge has been fuelled by a confluence of favourable macroeconomic signals and shifting investor sentiment.

Markets responded positively to US President Donald Trump’s recent move to de-escalate trade tensions with China, including a 90-day suspension of new tariffs and a more conciliatory tone in ongoing negotiations.

This temporary truce eased fears of a renewed trade war and helped restore confidence across risk-on assets, including cryptocurrencies.

Encouraging US inflation data earlier this month further supported the rally, prompting capital to rotate back into markets seen as sensitive to macroeconomic signals.

Bitcoin, once viewed largely as a hedge against uncertainty, is now increasingly embraced as a high-conviction risk asset during periods of geopolitical calm and regulatory clarity.

Bitcoin entered May with a “near-flawless setup,” noted Jag Kooner, head of derivatives at Bitfinex, pointing to the rare alignment of improving macroeconomic indicators, geopolitical de-escalation, and a more favourable regulatory climate.

Kooner said:

“The Russia–Ukraine ceasefire talks have defused one of the primary geopolitical volatility engines of the past two years. Rather than triggering capital flight from Bitcoin — as often seen when risk wanes — this easing is unlocking a risk-on rotation. We’re seeing capital rotate into BTC and high-beta tech as the need for geopolitical hedging fades, but liquidity remains abundant.”

According to Aurelie Barthere, principal research analyst at crypto analytics platform Nansen, the shift in tone removed the threat of a "sudden re-escalation," triggering a strong appetite for risk among both traditional and crypto investors.

This evolving market narrative marks a significant shift.

Kooner added:

“Bitcoin is no longer just a fear hedge — it’s increasingly a high-conviction risk asset in periods of macro stability.”

Still, he cautioned that for a sustained rally, funding rates must remain neutral and open interest should hold steady.

If those conditions persist, and a fresh regulatory or macroeconomic catalyst emerges, BTC could test the $114,000–$120,000 range in the near term.

Looking further ahead, some analysts see even greater upside.

Jamie Coutts, chief crypto analyst at Real Vision, forecasts Bitcoin could climb past $132,000 by year-end.

His projection is based on Bitcoin’s strong correlation with the global money supply and a growing investor focus on fiat currency debasement as a long-term structural concern.

BTC Rally Builds as Bulls Set Sights Beyond $110K

Riding a wave of bullish momentum, crypto trader Titan of Crypto highlights a Bitcoin price target of $135,000 as “still in play” for 2025.

#Bitcoin $135,000 Target Still in Play for 2025 🚀

The plan is unfolding perfectly.

We kept stacking #BTC when everyone was panicking and got plenty of hate for it.

Imagine still being on the sidelines now... 👀 pic.twitter.com/ry1XeGVsg2r/>— Titan of Crypto (@Washigorira) May 21, 2025r/> a

This forecast is based on analysing key resistance and support levels over the past two years using the Fibonacci extension tool, which projects price targets by measuring previous price swings.

Notably, the 1.618 Fibonacci level—calculated from a recent swing low to swing high—aligns neatly within the $135,000 to $140,000 range, marking a significant potential milestone.

Veteran trader Peter Brandt, while acknowledging Bitcoin’s recent all-time high, cautions that such peaks often lack “technical significance” in the context of a bull market.

Meanwhile, technical analyst Gert van Lagen presents a far more optimistic outlook, setting a target between $300,000 and $320,000.

Van Lagen points to Bitcoin’s recent breakout from a four-year bullish Megaphone Pattern—a formation characterised by diverging trendlines with higher highs and lower lows—indicating a sharp uptrend after breaching upper resistance.

Applying Elliott Wave Theory, he argues that BTC is currently in the final Wave 5 of an impulse cycle, which could fuel an additional 170% to 190% rally.

$BTC [2W] - Get ready for the final leg up to $300k-$320k. 📣

Price has broken out of a 4 year Bullish Megaphone Pattern and retested it for 3 months successfully.

Step-like Formation has been fully validated by price discovery way beyond Base 4. pic.twitter.com/qEQ4rBaEDP<br/>— Gert van Lagen (@GertvanLagen) May 21, 2025<br/> a

Amidst growing market euphoria, cautionary voices urge prudence.

João Wedson, CEO of Alphractal, warns investors to be patient and manage risk carefully.

According to Wedson, Bitcoin heatmaps show price action approaching high-leverage zones, where market makers may seek to liquidate overconfident traders.

He stresses that the public fixation on new all-time highs can create traps for both bulls and bears, making risk management essential.

Adding to the bullish narrative, Michael Saylor, co-founder of Strategy, recently reaffirmed in a video that Bitcoin remains the premier asset to invest in today.

He described BTC as a reliable haven against risks to physical capital, underscoring confidence in its breakout to new highs.

If bulls maintain control and macroeconomic conditions remain stable—especially with the Federal Reserve facing pressure from weak long-bond demand—the path to $120,000 within this month appears increasingly attainable.

The question now is whether Bitcoin’s momentum can hold firm amid the evolving market dynamics.