Why Bitcoin’s Guarantee of $135,000 Target Could Emerge This Week

As of May 20, 2025, Bitcoin (BTC) is trading at approximately $105,252, reflecting a 2.18% increase from the previous close. The cryptocurrency market is buzzing with speculation about Bitcoin’s potential to reach a $135,000 target. Several technical and fundamental factors are converging to suggest that this milestone could be within reach this week. This article delves into the recent price action, technical analysis, market sentiment, and potential trading strategies that could drive Bitcoin toward this ambitious target.

Stock market information for Bitcoin (BTC)

- Bitcoin is a crypto in the CRYPTO market.

- The price is 105252.0 USD currently with a change of 2245.00 USD (0.02%) from the previous close.

- The intraday high is 106705.0 USD and the intraday low is 102411.0 USD.

Current Price and Recent Price Action

Currently, Bitcoin is trading at $105,252. For the most up-to-date price, you can check Binance.

In the recent weeks, Bitcoin has experienced significant volatility. After consolidating around the $95,000 - $100,000 range for a brief period, it has now broken upwards demonstrating strong bullish momentum. The breakout was primarily fueled by a combination of institutional buying, positive regulatory news, and increasing adoption by mainstream financial institutions. The upward movement has been characterized by periods of intense buying pressure followed by brief consolidation phases, indicating a healthy and sustainable uptrend.

Technical Analysis: Chart Patterns

Several technical chart patterns suggest a continued bullish outlook for Bitcoin.

Ascending Triangle

An ascending triangle pattern has been observed on Bitcoin's daily chart. This is a bullish pattern characterized by a rising lower trendline and a horizontal upper trendline acting as resistance. The breakout above the upper trendline around $102,000 confirms the pattern, suggesting a potential price target derived by measuring the widest part of the triangle and adding it to the breakout point. This projects a target of around $115,000 in the near term, further supporting the potential move towards $135,000.

Bull Flag

Another bullish pattern identified is the bull flag, which is a continuation pattern that forms after a strong upward move. The pole of the flag represents the initial surge, and the flag itself is a period of consolidation. The recent breakout from the flag formation suggests a continuation of the upward trend. Applying the bull flag target, we estimate the potential upside by measuring the length of the pole and projecting it from the breakout point. This gives us a target range between $110,000 and $120,000, aligning with the broader $135,000 target.

Cup and Handle

A larger timeframe analysis reveals a potential cup and handle pattern forming on the weekly chart. This is a bullish continuation pattern that suggests a prolonged uptrend. The cup represents a period of consolidation, and the handle represents a brief pullback before the breakout. If the pattern completes and Bitcoin breaks above the handle resistance, the projected target would be substantially higher, supporting the long-term bullish outlook.

Key Support and Resistance Levels

Identifying key support and resistance levels is crucial for traders to understand potential entry and exit points.

Key Resistance Levels:

-$107,000 - $108,000: This level represents immediate resistance based on recent price action. Breaking above this level would likely trigger further buying pressure.

-$115,000 - $120,000: A significant psychological resistance level. Overcoming this barrier would pave the way for a test of higher targets.

-$130,000 - $135,000: The primary target zone, representing the next major resistance area. A successful breach of this level would signal a strong continuation of the bull market.

Key Support Levels:

-$100,000 - $102,000: A crucial support zone that has been tested multiple times. Holding this level is essential to maintain the current bullish momentum.

-$95,000 - $97,000: Represents a deeper support level. A break below this area could signal a potential trend reversal.

-$90,000: A strong psychological support level. Breaching this level could lead to significant downside pressure.

Technical Indicators Analysis

Analyzing technical indicators provides additional insights into the strength and sustainability of the current trend.

Moving Averages

The 50-day and 200-day moving averages are widely used indicators to gauge the overall trend. Currently, the 50-day moving average is well above the 200-day moving average, forming a "golden cross." This is a bullish signal indicating a potential long-term uptrend. Furthermore, Bitcoin's price is trading comfortably above both moving averages, confirming the bullish sentiment.

Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions. Currently, the RSI is around 70, indicating that Bitcoin is approaching overbought territory. However, in a strong uptrend, the RSI can remain in overbought conditions for an extended period. Traders should watch for potential divergences between the price and RSI, which could signal a possible pullback.

MACD (Moving Average Convergence Divergence)

The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD line is above the signal line, and both are trending upwards, indicating strong bullish momentum. The histogram is also positive, further confirming the bullish trend. A crossover of the MACD line below the signal line could signal a potential trend reversal.

Trading Volume

Trading volume has been increasing during the recent price surges, indicating strong buying interest. High volume confirms the strength of the trend and increases the likelihood of the uptrend continuing. Conversely, decreasing volume during consolidation phases suggests that the market is taking a breather before the next move.

Fibonacci Retracement Levels

Applying Fibonacci retracement levels to recent price swings can help identify potential support and resistance levels. The 38.2% and 61.8% retracement levels are commonly watched areas. If Bitcoin experiences a pullback, these levels could act as potential support zones.

Market Sentiment and Fundamental Factors

Market sentiment surrounding Bitcoin is overwhelmingly positive, driven by several fundamental factors.

Institutional Adoption

Institutional adoption continues to be a major driver of Bitcoin's price. Increasing numbers of corporations, hedge funds, and asset managers are adding Bitcoin to their portfolios. This institutional buying provides significant support and validates Bitcoin's role as a store of value and hedge against inflation.

Regulatory Developments

Recent regulatory developments have been largely positive for the cryptocurrency industry. Increased clarity and acceptance from regulatory bodies in various countries have boosted investor confidence. This includes the approval of Bitcoin ETFs in the US and other regions, which has made it easier for institutional and retail investors to gain exposure to Bitcoin.

Network Upgrades

Ongoing network upgrades, such as the Taproot upgrade, improve Bitcoin's scalability, privacy, and functionality. These upgrades enhance the network's overall value proposition and attract more users and developers.

Macroeconomic Factors

Macroeconomic factors, such as inflation, interest rates, and geopolitical events, also play a significant role in Bitcoin's price. Bitcoin is often seen as a hedge against inflation, and its value tends to increase during periods of economic uncertainty.

Potential Trading Strategies

Based on the current technical and fundamental outlook, traders may consider the following strategies:

Long Position with Stop-Loss

Traders may consider opening a long position, targeting the $135,000 level. A stop-loss order should be placed below the key support level of $100,000 to protect against potential downside risk.

Breakout Trading

Traders may wait for a confirmed breakout above the $107,000 resistance level before entering a long position. This strategy aims to capitalize on the momentum following a significant breakout.

Pullback Buying

Traders may wait for a pullback towards the $100,000 - $102,000 support zone before entering a long position. This strategy aims to buy Bitcoin at a discounted price during a temporary pullback.

Hedging

Traders may consider hedging their Bitcoin holdings by using derivatives or other cryptocurrencies. This strategy helps to mitigate potential downside risk while still maintaining exposure to Bitcoin's upside potential.

Recent analyses from reputable sources provide insights into Bitcoin's current price action and influencing factors:

1. Technical Analysis: On May 8, 2025, FinanceFeeds reported that Bitcoin broke through the resistance area around $97,500, continuing its upward momentum. The analysis suggests that BTC could rise toward the next resistance level at $100,000, followed by $102,500. This outlook is based on the strength of active impulse waves and bullish sentiment in the cryptocurrency markets. (financefeeds.com)

2. Fundamental Factors: A May 2025 article on Medium highlighted several key developments:

- Regulatory Developments: Global regulators have become more crypto-friendly. In the U.S., the SEC Chair known for a pro-crypto stance was confirmed in April 2025, and the OCC allowed national banks to custody crypto-assets without prior approval. In Europe, the EU's MiCA regime standardized crypto regulations across member states.

- ETF Approvals and Flows: The U.S. approved 11 spot Bitcoin ETFs in January 2024, leading to significant inflows. By April 2025, BlackRock's Bitcoin ETF held approximately 580,000 BTC, indicating strong institutional interest.

- Institutional Investment: Companies like MicroStrategy continued to accumulate Bitcoin, with MicroStrategy purchasing 15,355 BTC in April 2025, raising its total holdings to around 554,000 BTC.

- Macroeconomic Factors: Global liquidity and interest rate trends have influenced Bitcoin's price. The Federal Reserve began cutting rates in late 2024, and analysts note a high correlation between global money supply and Bitcoin's price, suggesting that increased liquidity could drive BTC to new highs. (medium.com)

These analyses indicate that both technical patterns and fundamental developments are contributing to Bitcoin's current price trajectory.

Short-Term Price Analysis

In the short term, Bitcoin's price action is likely to be influenced by its ability to break above the $107,000 - $108,000 resistance zone. Here are potential price targets for bullish and bearish scenarios:

Bullish Scenario:

If Bitcoin successfully breaks above the $107,000 - $108,000 resistance, the next target would be the $115,000 - $120,000 range. A sustained move above this level could trigger a rapid ascent towards the $130,000 - $135,000 target. In this scenario, the $135,000 target could be reached within the week, driven by strong buying pressure and positive sentiment.

Bearish Scenario:

If Bitcoin fails to break above the $107,000 - $108,000 resistance, it could experience a pullback towards the $100,000 - $102,000 support zone. A break below this level could lead to further downside towards the $95,000 - $97,000 support area. In this scenario, the $135,000 target would likely be delayed, and traders should be prepared for potential consolidation or correction.

Relevant YouTube Videos for Price Analysis

For further insights into Bitcoin's price action, consider watching these recent YouTube videos:

Video 1: Crypto FOMO Buyers Are Trapped! Here's How To Play This Right!

https://www.youtube.com/watch?v=S1hJeiivZGs

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

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

Conclusion

Bitcoin's potential to reach the $135,000 target this week is supported by a combination of bullish technical patterns, positive market sentiment, and strong fundamental factors. The ascending triangle, bull flag, and potential cup and handle patterns suggest continued upward momentum. Institutional adoption, regulatory developments, and network upgrades further strengthen the bullish case. However, it is important to acknowledge the inherent volatility and risks of cryptocurrency trading. Traders should conduct independent research, use appropriate risk management techniques, and be prepared for potential price fluctuations. The information provided in this article is for informational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before making any investment decisions.