Bitcoin Surges 1.9% to New All-Time High of $112,040

Bitcoin has maintained a robust uptrend, surpassing previous local highs and indicating a bullish continuation. The cryptocurrency briefly reached a new all-time high of $112,040, a significant achievement in its price trajectory. This surge followed a period of consolidation within a tight range of $106,000 to $110,000, during which Bitcoin spiked sharply, closing the day with a 1.9% gain and surpassing the previous high from May.

The crypto market has exhibited bullish signals, with the total crypto market cap rising by 1%. Bitcoin itself has seen a nearly 3% increase over the past 24 hours, contributing to the overall positive sentiment. This momentum has been driven by various factors, including political developments and investor optimism.

Institutional demand and macroeconomic factors are reinforcing the current rally, creating a supportive environment for risk assets. The positive price action of Bitcoin is reflected across the broader crypto market, with altcoins also experiencing gains. The crypto fear & greed index hovers in the neutral zone but is close to entering the ‘Greed’ zone, indicating strong bullish sentiment. Institutional demand, particularly from spot Bitcoin ETFs, remains a key driver. Additionally, recent U.S. macroeconomic data, including a cooling inflation rate and anticipation of potential interest rate cuts, has created a favorable backdrop for risk assets, including Bitcoin.

The latest price action of Bitcoin appears to be extremely bullish, suggesting that the bulls have maintained a strong grip on the rally. Connecting the highs, the next crucial resistance to surpass is $112,917.33, which may trigger a strong rally in the coming days. The supertrend has turned bullish with the latest breakout, hinting towards the beginning of a strong bullish trend. On the other hand, RSI is forming consecutive higher highs and lows and eventually pushes the levels towards the upper threshold.

Therefore, the Bitcoin (BTC) price appears to be strongly within a bullish trajectory and hence is expected to maintain a strong ascending trend. However, the price is believed to consolidate for a while but eventually remains within a bullish influence. The price structure remains bullish, supported by previous retests and multiple continuation flags throughout the rally. Currently, the BTC price is now pressing just beneath the upper channel resistance, targeting a potential extension toward the $117,000 to $120,000.

A prominent analyst has identified key points at which Bitcoin long-term holders may start selling their holdings. According to the analyst, these seasoned investors typically begin selling when their unrealized profits cross a major threshold, specifically 300%. This pattern has been observed in previous bull rallies, where selling pressure from long-term holders contributed to price corrections. For instance, in mid-March 2024, when Bitcoin reached $72,754, the profit ratio for long-term holders hit 296.9%. As this number approached the 300% mark, many holders began selling, leading to a drop in price. Similarly, during the rally between November 2024 and January 2025, Bitcoin pushed past the $100,000 milestone and hit an all-time high of about $106,000. At that price level, long-term holders were sitting on a 357% profit, triggering another round of heavy selling.

Currently, despite Bitcoin trading at over $109,000, long-term holders are only up about 215% on average. This gap between price and profit ratio is due to a change in their cost basis. In December 2024, long-term holders had an average entry price of $23,314, which has now climbed to $34,400. For these holders to reach a 300% profit at the current cost basis, Bitcoin would need to hit $137,600, representing a 25% increase from current levels. The analyst believes that if Bitcoin can see another upsurge pushing it toward $137,000 before encountering a roadblock, the market could remain in a range where long-term holders may either continue to take profits gradually or prepare for a sharper round of selling once the threshold is met. Additionally, the analyst noted that Bitcoin usually sets a new all-time high within 50 days of the previous one, provided the market avoids a correction deeper than 20%. It has been 47 days since the last all-time high, and there has been no major pullback, suggesting that Bitcoin could break its previous high of around $112,000 within the next seven days.

Blockchain analytics firm noted that Bitcoin’s RHODL Ratio has reached its highest point in this cycle, indicating that a growing share of Bitcoin wealth now sits with holders who entered during the current cycle. This change suggests that the market may be entering a transition phase, leading to a drop in speculative momentum. At the time of reporting, Bitcoin was trading at $109,379, up over 1% in the past week.