Bitcoin (BTC) Price: Why This $111,000 Rally Looks Different From Previous Bull Runs

TLDR

Table of Contents

Bitcoin reached a new all-time high above $111,000 with relatively calm market conditions and minimal overheating signs
Funding rates and speculative activity remain lower than previous bull cycle peaks, suggesting more sustainable rally
Institutional demand continues growing with US Bitcoin ETFs holding approximately $129 billion in assets
Short-term profit-taking activity is occurring but remains below March and November 2024 levels
Technical analysts identify key resistance levels at $116,000, $126,000, $136,000, and $148,000

Bitcoin has quietly reached a fresh all-time high, trading above $111,000 yesterday. The milestone represents approximately 2% above its previous record of $109,600 set in mid-January.

Market conditions have remained relatively calm during this price surge. This contrasts with previous bull market rallies that typically showed excessive euphoria and overheating signs.

Funding rates, which measure speculative activity, have stayed subdued despite the new record. Long positions have increased but remain lower than during prior bull cycle peaks.

Short-term capital inflows into Bitcoin have not reached the high levels seen in previous rallies. Analysis of Bitcoin traded within one week to one month periods shows more measured momentum this time.

Some short-term holders have realized profits during the current rally. However, the scale of profit-taking remains far below levels seen in March and November 2024.

Both previous periods were followed by sharp pullbacks and billions in trader liquidations. The current environment shows more restraint from market participants.

Institutional Demand Drives Steady Growth

US-based spot Bitcoin ETFs continue attracting institutional investment. Total net assets in these funds now amount to approximately $129 billion.

This figure represents around 6% of Bitcoin’s total market capitalization. The steady institutional accumulation provides underlying support for price appreciation.

Old Bitcoin whales have shown reluctance to sell despite successive new highs. This behavior suggests major holders expect further price appreciation ahead.

The lack of major whale selling activity contributes to the rally’s sustainability. Large holder conviction often indicates stronger price foundations.

Technical Analysis Points to Higher Targets

Crypto analyst Ali Martinez has identified several key resistance levels ahead. The next targets include $116,000, $126,000, $136,000, and $148,000.

#Bitcoin $BTC is trading at new all-time highs, entering price discovery. The next key levels to watch are $116,000, $126,000, $136,000, and $148,000! pic.twitter.com/yh3ShJ5X59
— Ali (@ali_charts) May 21, 2025

Technical indicators suggest further upside potential for Bitcoin. Analyst Titan of Crypto notes Bitcoin is approaching a bullish Golden Cross formation on weekly charts.

Crypto analyst Ted Pillows believes Bitcoin may have entered the final phase of a Wyckoff Accumulation pattern. This could potentially drive prices as high as $120,000.

Exchange data shows mixed signals for short-term direction. Binance recorded 4,435 BTC in positive netflows on May 22, the largest since April 7.

The positive inflows suggest potential selling pressure as traders take profits. However, the 30-day moving average shows negative netflows of -1,318 BTC.

Open Interest on Binance has reached levels similar to December 2024. High Open Interest reflects strong bullish sentiment but also indicates potential volatility.

The Estimated Leverage Ratio has climbed to 0.2, matching December 2024 levels. This metric suggests increased speculative activity in the market.

The adjusted SOPR metric shows investors have been selling at a profit. Its 7-day moving average reads above 1 but remains below March and November 2024 peaks.

At press time, Bitcoin trades at $110,800, representing a 3% gain over the past 24 hours.

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