- Bitcoin has surged to a new all-time high of $118,000, driven by growing expectations of Fed rate cuts and a sharp increase in institutional inflows into spot Bitcoin ETFs.
- With retail investors pulling back and technical indicators flashing bullish, analysts believe BTC may soon challenge the $120,000 mark as its nextprice target.
Bitcoin continues to ride a wave of bullish momentum, stabilizing around $111,000 on Thursday after setting a fresh all-time high of $111,999 the day before. The surge was triggered by dovish signals from the Federal Reserve, with minutes from the latest FOMC meeting.
Now, at the time of press, BTC has astonished the crypto community after recording a new all-time high of $118,000.
The potential for lower interest rates has reinvigorated investor appetite for alternative assets like Bitcoin. The crypto market responded swiftly, with institutional inflows into spot Bitcoin ETFs surging to $218 million on Wednesday alone.
This marks the fourth consecutive day of ETF inflows and brings total institutional investment in Bitcoin ETFs this month to over $1.18 billion, according to SoSoValue.
On-chain data suggests a changing market dynamic. In this case, retail investors appear to be stepping back, while institutional players are increasingly taking center stage. Santiment data shows a steady decline in BTC holdings among retail wallets, likely due to waning confidence or short-term boredom. Historically, such retail exits have often marked ideal accumulation phases for institutional “smart money.”
Supporting this bullish trend, derivatives data from CoinGlass reveals that Bitcoin’s open interest has surged 8.07% in the past 24 hours, reaching $79.45 billion. This suggests that new money is entering the market and strengthening the ongoing rally. Moreover, $234 million in short positions were liquidated during the same period, including $221 million in BTC shorts, indicating that bearish traders were caught off guard by the breakout.
Technical indicators are also leaning bullish. The Relative Strength Index (RSI) sits at 61—comfortably above the neutral 50 mark, while the MACD has been displaying rising green histogram bars since the end of June, reinforcing the case for continued upward momentum. Analysts say Bitcoin is now in “price discovery mode,” with the next major resistance level pegged at the psychological $120,000 mark.
The Bitcoin Exchange Liquidation Map shows nearly $2.5 billion in short positions could be wiped out if BTC crosses $120,000, potentially triggering a short squeeze that would send the price even higher.
However, should Bitcoin face short-term selling pressure, it may find support around $108,355, the upper boundary of the recently broken consolidation range. Still, with macroeconomic conditions turning favorable and institutional inflows accelerating, the broader trend remains firmly bullish.
As the market awaits further data from the U.S. labor sector and upcoming Fed speeches, the stars may be aligning for Bitcoin’s next major move—one that could redefine its valuation yet again.
