Bitcoin Surges 5% to New All-Time High of $116,800

Bitcoin has achieved a new milestone, surpassing $116,800 to reach an unprecedented all-time high. This surge follows a period of consolidation above $110,500, with the cryptocurrency breaking through key resistance levels at $112,000 and $113,500. The upward momentum was fueled by a breakout above a bearish trend line near $111,000, as indicated by on-chain data.

The cryptocurrency's price peaked at $116,800, marking its highest level ever recorded. Currently, Bitcoin is consolidating above the 23.6% Fibonacci retracement level of its recent upward swing. The world’s largest cryptocurrency is trading firmly above $113,500 and is well-supported by the 100-hourly Simple Moving Average, a key indicator for short-term bullish setups.

Immediate resistance for Bitcoin stands near $116,000, with additional hurdles at $116,200 and the previous high at $116,800. If bulls maintain their momentum and close decisively above these levels, Bitcoin could challenge the $118,000 mark. Analysts suggest that a clear breakout above this level could open the door for a test of $118,800 and potentially the symbolic $120,000 milestone.

However, Bitcoin's volatility remains a concern. If the cryptocurrency fails to clear $116,800 convincingly, a downside correction could follow. Initial support is near $115,300, with the next major floor at $113,700—the 50% Fib retracement of the recent rally. Further losses could see the price slide back toward $112,500 or even the crucial $110,500 support zone.

Technical signals remain bullish, with the hourly MACD showing momentum picking up in the positive zone. The RSI (Relative Strength Index) has stayed comfortably above 50, indicating continued buyer strength. For Bitcoin traders, the immediate roadmap is clear: hold above key short-term supports and maintain momentum to break the next resistance walls. Many bulls now have their sights set on the historic $120,000 threshold as Bitcoin continues to solidify its place in a maturing market.

Bitcoin's recent rally can be attributed to several factors, including supportive comments from US President Donald Trump, who has publicly advocated for a significant rate cut by the Federal Reserve. This has fueled speculation about an influx of liquidity, creating a favorable environment for high-beta assets like Bitcoin. Additionally, the cooling of inflation and the potential for lower interest rates have contributed to a risk-on sentiment, with institutions already holding substantial positions in cryptocurrencies.

The technical analysis of Bitcoin's price movement reveals a bullish trend. The Moving Average Convergence Divergence (MACD) indicator shows a widening histogram, indicating accelerating upside momentum. Key resistance levels are now at $112,000 and $115,500, while support zones are at $110,000 and $107,800. The breakout above $110,000 has flipped the market structure, with what was once resistance now serving as critical support. Bulls are actively defending against any dips, and the MACD's bullish crossover remains intact, confirming the strength of the current trend.

The surge in Bitcoin's price has also had a ripple effect on the broader cryptocurrency market. Ethereum (ETH) has pushed toward $2,850, while other altcoins such as Solana (SOL) and Dogecoin (DOGE) have posted double-digit gains. This market-wide squeeze indicates that the rally is not limited to Bitcoin but is part of a broader trend of increasing interest and investment in cryptocurrencies.

Looking ahead, Bitcoin's next target is the $115,000–$120,000 zone. This range aligns with Fibonacci extensions and volume gaps left behind during the April selloff. While the current momentum, headlines, and technical indicators all support continuation, the only potential threat to this rally could be an unexpected macroeconomic event. However, for now, the outlook remains bullish, with analysts and investors optimistic about Bitcoin's potential to reach new heights.