Bitcoin Surges 25% to New All-Time High of $118,000 on Institutional Demand

Bitcoin has surged to a new all-time high of $118,000, driven by a confirmed inverse head and shoulders breakout signaling strong bullish momentum. This technical pattern, characterized by three distinct troughs with progressively higher lows, suggests a potential price target exceeding $160,000. The breakout above the neckline near $112,500 has been met with sustained buying pressure, indicating a solid accumulation phase that has been pivotal in maintaining momentum above key support levels.

Trading volumes have surged by 93%, supported by substantial ETF inflows and declining exchange selling pressure, indicating robust institutional demand. The surge in trading volume to $123 billion within a 24-hour period underscores heightened market activity. This is complemented by significant spot ETF inflows, which totaled $1.18 billion in a single day—one of the largest recorded. Additionally, whale transactions exceeding $100,000 reached $124.26 billion, while net exchange outflows of -$583 million indicate reduced selling pressure on exchanges. These factors collectively point to strong institutional participation and a robust liquidity environment supporting Bitcoin’s upward trajectory.

According to COINOTAG analysts, Bitcoin is currently in the expansion phase of the Power-of-3 pattern, a cyclical market structure that follows accumulation and manipulation phases. This phase, expected to extend through Q3 2025, typically involves accelerated price appreciation driven by increased demand and market confidence. Projections place Bitcoin’s price between $135,000 and $140,000 by the end of this period, reflecting a measured but optimistic outlook based on historical patterns and current market dynamics.

Technical analysis reveals that Bitcoin’s breakout is supported by key momentum indicators and declining volatility, which often precede sustained rallies. Market sentiment has shifted positively, with investors showing increased conviction as evidenced by rising open interest in futures markets and growing participation in spot ETFs. This alignment of technical and fundamental factors enhances the probability of Bitcoin reaching and potentially surpassing the $160,000 target derived from the inverse head and shoulders pattern.

Bitcoin’s breakout above $118,000, validated by a classic inverse head and shoulders pattern and supported by rising volume and institutional inflows, marks a significant milestone in its price trajectory. The ongoing Power-of-3 expansion phase suggests further upside potential, with analysts forecasting targets between $135,000 and $160,000 by late 2025. Investors should monitor volume trends and ETF activity closely, as these remain critical indicators of market strength and sustainability in this bullish cycle.