Bitcoin (BTC) Price Soars Above $105,000 Reigniting Curiosity About Its Potential Ceiling

Bitcoin's (BTC) rise above $105,000 on May 20, 2025, has reignited curiosity about its potential ceiling and the forces propelling its current rally.

Bitcoin’s (BTC) price surge above $105,000 on May 20 has reignited curiosity about its potential ceiling and the forces propelling its current rally.

As investors and analysts speculate on how high Bitcoin can climb, today’s surge, fueled by institutional inflows, bullish technical patterns, and macroeconomic tailwinds, offers clues to its trajectory.

Drawing from expert insights, on-chain data, and market trends, this article explores why Bitcoin is soaring today and what price levels it might reach in the near and long term.

From a technical analysis perspective, two things seem important: a bullish pin bar on the BTC daily chart and a potential golden cross.

Why Is Bitcoin Going Up Today?

Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that 최근 급등 원인은 무엇일까요? Countless articles, posts, and reports have been written on this topic. Still, it seems that there is no single answer and several key factors are driving Bitcoin's rally. Dr. Kirill Kretov from CoinPanel provides some insight into the current market dynamics:

"From an on-chain perspective, the current Bitcoin setup closely resembles the pre-bull run structure we saw in early 2021. While we are not seeing the breakout yet, the conditions for a major move are rapidly forming.”

1. Growing Institutional Demand and ETF Inflows

Institutional interest in Bitcoin is at an all-time high, significantly boosting its price. Spot Bitcoin exchange-traded funds (ETFs) in the U.S. have seen inflows for 18 of the last 21 days, accumulating $6.9 billion in new capital over three weeks, according to Farside Investors. Additionally, CoinShares reported $557 million in inflows to Bitcoin investment products last week, reflecting growing investor confidence.

Corporate adoption is also on the rise. Strategy (formerly MicroStrategy) purchased 7,390 BTC worth $765 million, while Japan’s Metaplanet added 1,004 BTC for $129 million, as announced on May 19. This institutional and corporate buying spree signals Bitcoin’s increasing role as a long-term asset, pushing its price toward new highs.

JUST IN: 🇯🇵 Metaplanet bought another 1,004 #Bitcoin for ¥15 billion.

2. High Open Interest in Futures Markets

Bitcoin’s rally is further supported by unprecedented open interest (OI) in the futures market, which hit an all-time high of $72.63 billion on May 20, up 27% from $57.1 billion a month earlier, according to CoinGlass.

Bitcoin CME futures OI also reached a 90-day high of 157,875 BTC ($16.76 billion) on May 19. This surge in leveraged positions indicates strong market expectations of continued upward momentum, similar to the 84% rally from October to December 2024, when Bitcoin hit its previous all-time high of $108,000.

3. Macroeconomic Tailwinds

Macroeconomic factors are also fueling Bitcoin’s rise. Increasing M2 money supply and easing U.S.-China trade tensions have bolstered bets on a new record high.

Bitcoin’s fixed supply and transparency make it an attractive hedge against fiat currency risks and sovereign debt fragility, especially as institutional and sovereign interest grows, according to Tracy Jin, COO of MEXC.

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Another interesting perspective comes from Dr. Kirill Kretov, an expert in technical analysis and on-chain data. According to Dr. Kretov, the structure of the current Bitcoin setup closely resembles the pre-bull run formations observed in early 2021.

Additionally, a bullish pin bar candle near the $105,000 support level, identified in my technical analysis, signals strong buying pressure defending this key zone. This level aligns with local highs from early May, further reinforcing its significance.

The upcoming golden cross, where the 50-day simple moving average (SMA) crosses above the 200-day SMA, also supports bullish