Bitcoin surges 100% to new all-time high of $112,000

Bitcoin has surged to a new all-time high of $112,000, sparking optimism among bullish analysts who predict the cryptocurrency could reach $150,000. Kyle Reidhead, co-founder of Milk Road, expressed his bullish sentiment on X, referencing a previous post that indicated a "bullish cup and handle" formation, which he believes will drive Bitcoin to $150,000. This optimism comes after a period of tight consolidation that had many analysts concerned about Bitcoin's ability to surpass its previous record high in May.

The new all-time high appears to have come at an opportune time. Just hours before Bitcoin's surge, economist Timothy Peterson suggested that if Bitcoin did not hit new highs within the next two weeks, it might not be able to approach such levels until October. This prediction underscores the significance of the recent price movement.

Market sentiment has also been on the rise. The Crypto Fear & Greed Index, which measures overall crypto market sentiment, spiked 5 points to a "Greed" score of 71 out of 100. This index is now at the same score it was 30 days ago, indicating a sustained level of market optimism. Additionally, the CoinMarketCap Altcoin Season Index signals that the market is still heavily favoring Bitcoin, with a "Bitcoin Season" score of 26 out of 100.

From a technical standpoint, Bitcoin appears to have broken out of its recent downtrend. Crypto analyst Matthew Hyland noted that Bitcoin has confirmed a daily higher-high, indicating an end to the downtrend that started in late May. Hyland stated, "Bulls are in control," suggesting that the upward momentum is likely to continue.

The recent price surge has caught some traders off guard. Just a day earlier, analysts from Bitfinex expressed caution about buying Bitcoin at its current level, noting that the cryptocurrency was struggling to find the strength to break above its all-time high. However, the liquidation of approximately $217.55 million in Bitcoin short positions over the past 24 hours indicates that many traders were caught on the wrong side of the market.

Despite the recent optimism, some analysts remain cautious. Santiment sentiment data showed the highest Bitcoin sentiment ratio in the past three weeks, but similar spikes in trader optimism were followed by Bitcoin price drops on June 11 and July 7. This suggests that while the current sentiment is bullish, there may be potential for volatility in the near future.

The recent price surge has been driven by institutional participation, according to eToro analyst Josh Gilbert. He noted that strong ETF inflows and a solid macro backdrop have helped drive market momentum. In July alone, there have been approximately $1.04 billion inflows into US-based spot Bitcoin ETFs. Coinstash co-founder Mena Theodorou echoed this sentiment, stating that the momentum is being driven by institutions, not retail investors. He added that Bitcoin has remained resilient in the face of global uncertainty, including escalating trade tensions and rising geopolitical risks.