Bitcoin Surges 14% to $108,000 on Fiat Distrust and Bullish Momentum

Bitcoin has experienced a significant rally, surpassing $108,000 on May 21, marking a 14% gain since May 5 and bringing it close to its all-time high of around $109,350. This rapid ascent has ignited a fresh wave of bullish momentum, with price targets now stretching as high as $200,000. Michael van de Poppe, founder of MN Capital, expressed surprise at the speed of Bitcoin's recovery, attributing the surge to growing distrust in fiat currencies and increased demand for digital assets.

Technical analysis supports the bullish outlook. Bitcoin recently completed a rounded bottom pattern on the daily chart, a classic reversal signal, and broke above the $106K neckline with conviction. This pattern suggests a measured move toward $140,956. The relative strength index (RSI) is hovering near 69, indicating that the market is not yet overbought. Additionally, a looming golden cross could trigger even stronger upside momentum.

Pseudonymous analyst AlphaBTC identified an extended ascending channel driving the rally since early April, with a short-term target of $115,000. AlphaBTC noted that the price action is being driven by larger players and that short squeezes are accelerating the move.

Some analysts are setting even higher targets. Mags, a popular crypto analyst, declared that Bitcoin is entering its “biggest bull run ever,” projecting a blow-off top around $215,000 based on historical halving cycles. Network economist Timothy Peterson sees a more conservative high, estimating BTC could reach at least $115,000 by June, with a ceiling around $130,000.

Beyond technical analysis, the macroeconomic backdrop is fueling Bitcoin's rally. With inflation still a concern and confidence in fiat currencies eroding, Bitcoin's appeal as a hedge and hard asset is gaining mainstream attention. The global crypto market cap surged past $3.36 trillion for the first time since February, amplifying bullish sentiment across the board.