Bitcoin price reached a new all-time high of $109,565 on Wednesday, May 21. Recession expectations in US stock markets and rapid capital outflows from Gold signal an active capital rotation into BTC. How high can Bitcoin go if bull traders clear the $110,000 resistance?
Bitcoin (BTC) Hits ATH as Texas Passes Bitcoin Reserve Bill
Bitcoin (BTC) price hit a new all-time high of $109,565 on Wednesday, May 21, after consolidating above the $100,000 level since the start of the month.
With bullish tailwinds from long-term holders opting to HODL, persistent demand from whale entities like MicroStrategy, Metaplanet, and Bitcoin ETFs, momentum surged again after Texas approved a bill to allow the state to hold Bitcoin as part of its strategic reserve.
On May 21, following the announcement from the Texas Senate, Bitcoin’s price jumped rapidly to $109,656, according to CoinGecko data. As of press time, BTC is consolidating just above $105,000, a key psychological support.
Market volume also confirms the move, with over $44.5 billion in daily trading volume has been recorded at price time, the highest since May 9, signalling strong buying support behind the ongoing rally
More Gains Ahead as Traders Rotate from Gold and US Stocks into BTC
Key macroeconomic indicators are pointing toward continued BTC upside. Major investors are now rotating capital out of traditional safe-haven assets like Gold and away from volatile equity markets into Bitcoin.
On May 20, financial analytics firm Barchart reported:
“Gold ETF $GLD saw an outflow of $2 billion last week, the largest weekly outflow since 2013.”— @Barchart on X
This capital exodus from Gold coincides with rising fears of a looming US recession. Kurt S. Altrichter, founder of Ivory Hill Wealth, highlighted that the Consumer Sentiment Index (CSI) dropped to 50.80, a level that has historically preceded major recessions—2001, 2008, and 2020.
“Consumer sentiment is crashing hard…”— @kurtsaltrichter on X
Simultaneously, top hedge funds have started shorting US equities, another red flag that risk-off investors are positioning for macroeconomic instability.
“[Funds] are short the stock market and reallocating heavily into BTC.”— @SJosephBurns on X
Combined, these critical market indicators suggest active capital rotation from Gold and US stocks into Bitcoin, which propelled its market valuation above $2.4 trillion for the first time on Wednesday, May 21.
What’s Next for BTC: Reversal Below $100K or $110K Breakout?
With bullish catalysts stacking up, here are key price levels to watch if BTC sustains this rally beyond $110,000, or if profit-taking sparks a reversal back below $100K?
Two critical levels to watch:
$110,000: A psychological and technical resistance zone. A clean breakout with further volume surge of toward $50 billion could spark a run toward $125K–$150K, especially if recession fears prompts the US Fed to cut rates in June.
$105,000: The current consolidation level. If this breaks, BTC price risks dipping toward $100K, but strong on-chain accumulation zones suggest bulls may defend this level aggressively.
Given the rising institutional interest, de-dollarization trends, and state-level BTC adoption, many traders now see $150,000 BTC as a realistic target for Q3 2025—if macroeconomic uncertainty deepens.
Bitcoin Price Forecast: $109K Rally Confirms Golden Cross Signal
Bitcoin price forecast signals maintain a bullish outlook following a sharp intraday wick to $109,845, with closing support at $106,834 signalling strong upward resilience.
The longer upper-shadow on the daily candle reflects a continued breakout trend, when BTC crossed $100,000 in early May. With another golden cross between the 5 and 13-period SMAs now in play, is signals prospects of another bullish breakout ahead before a major reversal.
More so, the Super SMA indicators (5 at $105,767, 8 at $104,946, and 13 at $104,489) remain aligned below the current BTC price, forming a rising channel that confirms momentum strength.
Volume activity has normalized following the early May spike, but net volume remains positive at 1.69K, indicating sustained buying pressure despite short-term profit-taking.
A breakout above the recent high of $109,845 could clear the path towards $112,000, and a long-term target at the $150,000 level, as recent predictions from top analysts like VanEck confirm.
Still, a sharp bearish scenario may emerges if BTC closes below the 13-SMA at $104,489, which could trigger a correction to the $102,000–$100,000 zone.
Frequently Asked Questions (FAQs)
A mix of macroeconomic fears, gold outflows, and state-level adoption like Texas’ BTC reserve bill fueled the surge.
Yes. If the $110K resistance breaks, and macroeconomic instability deepens, $150K could be realistic by Q3 2025.
Support at $105K and resistance at $110K. Breakouts or breakdowns from either will dictate the short-term direction.
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