TLDR
- Bitcoin reached a record daily closing price of $106,830
- Spot ETF investments are driving price momentum
- Technical indicators suggest momentum may be stalling
- $110,000 is the next key price level to watch
- Fiscal concerns in major economies may be supporting Bitcoin’s rise
Bitcoin has set a new record for its daily closing price, reaching $106,830 at the end of Tuesday’s trading session according to data from TradingView. This marks the highest daily close in Bitcoin’s history, occurring amid growing investment in spot exchange-traded funds (ETFs) and broader economic concerns.
The cryptocurrency has been trading in what analysts describe as a “Parallel Channel” pattern for several months. Bitcoin recently rose to the upper boundary of this channel, which has previously served as a resistance point.
Several technical indicators are showing mixed signals for Bitcoin’s short-term prospects. The Relative Strength Index (RSI) has formed a smaller peak while the price continued upward, creating a divergence that some traders view as a potential bearish signal.
Similarly, the Moving Average Convergence/Divergence (MACD) line has recently dipped below the signal line. This bearish crossover often suggests slowing momentum in the asset’s upward movement.
Is it time for new #Bitcoin $BTC all-time highs? Here’s what to watch:
• Price at major resistance
• Hanging man candlestick pattern
• Bearish RSI divergence
• MACD bearish crossoverMomentum is stalling. Caution is warranted! pic.twitter.com/ItUfhuPHEt
— Ali (@ali_charts) May 20, 2025
Despite these technical warnings, institutional interest remains strong. Investors continue to allocate capital to Bitcoin spot ETFs, providing fundamental support for the price.
Market Dynamics at $110,000
Market watchers are now focused on the $110,000 level as the next critical threshold for Bitcoin. Data from Deribit’s options market shows dealers holding significant “negative gamma” exposure at this price point.
This market dynamic means that if Bitcoin breaks above $110,000, dealers would likely need to hedge their positions by buying more Bitcoin. This could potentially accelerate the price movement even further.
The options market has grown substantially over the past five years, with dealer hedging activities increasingly influencing price volatility during important market moves.
The Coinbase Bitcoin Premium Index, which measures the price difference between Coinbase Pro and Binance, has remained positive. This indicates persistent buying pressure coming specifically from U.S.-based investors.
After another attempt to sustainably break beyond $106,000, Bitcoin experienced a minor pullback to around $105,300. These small retracements are common during uptrends as traders take profits before continuing higher.
Market analysts note that concerns about fiscal health in major economies, including the United States, may be contributing to Bitcoin’s strength. These same factors appear to be supporting gold prices as well.
The chaotic price action in bond markets suggests growing worry about government debt levels, potentially driving investors toward alternative assets like Bitcoin and precious metals.
Bitcoin’s price movement comes as trading volumes remain healthy across major exchanges. This indicates broad market participation rather than isolated buying from a small number of large players.
While technical signals show some warning signs of stalling momentum, the fundamental backdrop of institutional adoption through ETFs and macroeconomic concerns continues to provide support for Bitcoin’s price.
As Bitcoin trades near its all-time highs, market volatility could increase, especially if the price approaches the crucial $110,000 level where options market dynamics may amplify price movements in either direction.
The cryptocurrency’s recent performance has occurred without major announcements or developments, suggesting that broader market forces and investment flows are the primary drivers of the current price action.
Bitcoin’s record daily close at $106,830 represents another milestone in what has been a strong year for the original cryptocurrency, as it continues to attract interest from both retail and institutional investors.
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