$105K Bitcoin Price Bounce? Profits Surge As Bulls Eye ATH

Bitcoin continues its impressive climb in the crypto market, showing signs of resilience and potential for further growth. This article provides an in-depth analysis of Bitcoin's recent price action, technical indicators, market sentiment, and potential trading strategies, as of May 18, 2025.

Current Market Overview

Current Price: As of May 18, 2025, Bitcoin (BTC) is trading at $105,091, reflecting a 1.99% increase from the previous close. Source: Binance

Stock market information for Bitcoin (BTC)

- Bitcoin is a crypto in the CRYPTO market.
- The price is 105091.0 USD currently with a change of 2054.00 USD (0.02%) from the previous close.
- The intraday high is 105091.0 USD and the intraday low is 102855.0 USD.

Recent Price Action

Bitcoin has demonstrated significant bullish momentum, breaking through several resistance levels. After experiencing initial declines in early April, it rebounded strongly, gaining 15% within April alone and nearing the $100,000 mark. This robust performance outpaced major indices like the S&P 500 and Nasdaq. The price action has been marked by strong buying pressure, indicating strong investor confidence.

Technical Chart Patterns

Currently, a potential bull flag pattern is forming on the daily chart. This pattern is characterized by a sharp price increase (the "flagpole") followed by a period of consolidation in a downward sloping channel (the "flag"). If the price breaks upwards out of the flag, it could signal a continuation of the bullish trend with a target that is roughly the same size as the flagpole. This suggests a potential move towards new all-time highs.

Key Support and Resistance Levels

Key Support Levels:

- $100,000: This acts as a psychological support level. A drop below this level could trigger further selling pressure.
- $95,000: A significant support level based on recent price consolidation.
- $90,000: A strong historical support level.

Key Resistance Levels:

- $107,000: The immediate resistance level to watch. A successful break above this level could pave the way for further gains.
- $110,000: A psychological resistance level.
- $120,000: This level represents a key price target for many analysts, as Bitcoin aims for new all-time highs.

Technical Indicators Analysis

1. Moving Averages

The 50-day moving average is currently trending above the 200-day moving average, confirming a golden cross, which is a bullish signal indicating a potential long-term uptrend. The price is also trading above both the 50-day and 200-day moving averages, further supporting the bullish outlook.

2. Relative Strength Index (RSI)

The RSI is currently at 72. While not yet in overbought territory (typically above 70), it is approaching that level. This suggests that the momentum is strong, but traders should be cautious of a potential pullback if the RSI enters overbought conditions. A reading above 70 indicates that the asset is being bought aggressively, which might not be sustainable in the short term.

3. MACD (Moving Average Convergence Divergence)

The MACD is showing a bullish crossover, with the MACD line trending above the signal line. This suggests that the upward momentum is likely to continue. Additionally, the histogram is showing increasing positive values, indicating strengthening bullish momentum. The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD line is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The signal line is a 9-period EMA of the MACD line. When the MACD line crosses above the signal line, it generates a bullish signal, suggesting that the price is likely to move higher.

4. Trading Volume

Trading volume has been consistently high during the recent price surge, indicating strong buying interest and confirmation of the bullish trend. Higher volume during price increases typically validates the strength of the uptrend.

5. Fibonacci Retracement Levels

Considering the recent swing high of $105,091, potential retracement levels to watch include:

- 23.6% retracement at approximately $100,000 (also a key support level).
- 38.2% retracement at approximately $97,000.
- 50% retracement at approximately $92,500.
- 61.8% retracement at approximately $88,000.

These levels can act as potential support areas during pullbacks. Fibonacci retracement levels are horizontal lines that indicate potential areas of support or resistance. They are based on the Fibonacci sequence, a series of numbers where each number is the sum of the two preceding ones (e.g., 1, 1, 2, 3, 5, 8, 13, 21, etc.). These levels are often used by traders to identify potential entry or exit points.

Market Sentiment and Fundamental Factors

Market sentiment surrounding Bitcoin is predominantly bullish, fueled by a combination of factors:

- Institutional Adoption: Increased adoption by institutional investors continues to drive demand. The launch of spot Bitcoin ETFs has provided easier access for institutions and retail investors alike.
- Network Upgrades: Ongoing network upgrades and improvements in scalability and security enhance Bitcoin's appeal.
- Regulatory Developments: Positive regulatory developments in several countries have provided more clarity and legitimacy to the cryptocurrency market.
- Broader Market Trends: Favorable macroeconomic conditions and increasing concerns about inflation have made Bitcoin an attractive alternative asset.
- Inflation Hedge: Many investors view Bitcoin as a hedge against inflation, which has contributed to its recent price appreciation. As traditional currencies lose purchasing power due to inflation, Bitcoin's limited supply makes it an appealing store of value.

Recent analyses highlight Bitcoin's resilience amid market skepticism toward U.S. economic policies. Following initial declines in early April, Bitcoin rebounded, gaining 15% in April alone and nearing the $100,000 mark. This performance outpaced major indices like the S&P 500 and Nasdaq, as well as gold's 11% rise during the same period. Analysts at Block Scholes observed Bitcoin's changing correlations with traditional assets, noting a strong inverse relationship to the Treasury yield curve steepness. This shift has attracted increased investor interest, with $5.5 billion flowing into digital asset funds in the past three weeks, including $1.8 billion into Bitcoin products. Projections suggest Bitcoin could reach $120,000 in Q2 2025, though experts caution that its detachment from macroeconomic trends is still incomplete. (reuters.com)

In the first quarter of 2025, institutional investors adjusted their positions in spot Bitcoin exchange-traded funds (ETFs) amid a 12% decline in Bitcoin's price. Hedge funds, in particular, reduced their holdings as the basis trade—profiting from the difference between futures and spot Bitcoin prices—became less profitable. For instance, Millennium Management cut its stake in the iShares Bitcoin Trust ETF by 41% and exited the Invesco Galaxy Bitcoin ETF, while slightly increasing holdings in ARK and Grayscale ETFs. Conversely, Brown University entered the crypto ETF market with a $4.9 million stake, and Abu Dhabi’s Mubadala sovereign wealth fund increased its iShares ETF holdings to nearly $409 million. Analysts like Bitwise CIO Matt Hougan note that while hedge funds adjusted positions, interest from advisory firms may indicate sustained, incremental adoption of spot Bitcoin ETFs. (reuters.com)

These developments underscore Bitcoin's evolving role in the financial landscape, with both institutional and individual investors closely monitoring its performance and strategic positioning.

Potential Trading Strategies

Based on the current technical and fundamental outlook, traders might be considering the following strategies:

- Long Positions: Traders may consider opening long positions, targeting the $110,000 and $120,000 resistance levels. Stop-loss orders should be placed below key support levels (e.g., $100,000 or $95,000) to manage risk.
- Buy on Dips: Traders could look for opportunities to buy Bitcoin during pullbacks to key support levels, such as the 23.6% or 38.2% Fibonacci retracement levels.
- Breakout Trades: A breakout above the $107,000 resistance level could provide a buying opportunity, with a target towards higher resistance levels.
- Hedging Strategies: Given the inherent volatility of Bitcoin, some traders might use options or futures contracts to hedge their positions and protect against potential downside risks.

Short-Term Price Analysis

Bullish Scenario:

If Bitcoin breaks above the $107,000 resistance level and the bull flag pattern is confirmed, the next price target is $110,000, followed by $120,000. Strong buying volume and positive market sentiment are key factors for this scenario.

Bearish Scenario:

If Bitcoin fails to break above $107,000 and falls below the $100,000 support level, it could trigger a deeper correction towards $95,000 or even $90,000. Negative news or a significant market sell-off could contribute to this scenario. Key indicators to watch are the RSI and MACD; a significant drop in these indicators could signal a shift in momentum.

Relevant YouTube Videos

Here are two recent YouTube videos that offer additional price analysis for Bitcoin:

Video 1: Crypto Market Crash: HUGE Warning for Investors! | Shocking Bitcoin & Ethereum Price Prediction

https://www.youtube.com/watch?v=4NdHCiyZUbM

Video 2: You Just need 0.1 Bitcoin to be a Millionaire: Michael Saylor

https://www.youtube.com/watch?v=nUPjdusw3oc

Conclusion

Bitcoin is currently exhibiting strong bullish momentum, driven by a combination of technical factors, positive market sentiment, and increasing institutional adoption. The cryptocurrency is trading at $105,091 as of May 18, 2025, with potential targets of $110,000 and $120,000. However, it is crucial to remember that cryptocurrency trading involves inherent volatility and risks. It is essential to conduct independent research, monitor market conditions closely, and use appropriate risk management strategies. Investors should be prepared for potential pullbacks and corrections, and should always manage their positions carefully.