Bitcoin Hits New Record! Will This Bullish Momentum Lasts?

Bitcoin (BTC), the original and leading cryptocurrency, has once again captured the spotlight by approaching its all-time high with an unprecedented weekly close near $106,500. 

This milestone marks Bitcoin’s highest-ever weekly close, positioning BTC less than 3% away from its historic peak of $109,358 recorded in January 2024, reigniting bullish sentiment across global crypto markets.

The Surge to New Heights: Record Weekly and Daily Closes

On May 18, Bitcoin closed the week just shy of $106,500, surpassing its previous highest weekly close of $104,400 set in December 2023, according to TradingView. BTC has sustained an impressive six-week streak of consecutive weekly gains, a feat reminiscent of its powerful November rally that saw a $30,000 rise within three weeks.

The price momentum extends to daily performance as well; on May 18, Bitcoin achieved its highest 24-hour candle close ever recorded. Investor Scott Melker celebrated this milestone on social media, emphasizing the significance of this surge. 

Analyst Rekt Capital suggested that closing above $105,000 daily could confirm the formation of a “brand new higher high,” potentially unlocking further upside potential for BTC.

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Institutional Adoption Fuels Momentum

A key driver behind Bitcoin’s recent price rally is growing institutional interest. The return of the Coinbase premium—highlighted by Arete Capital’s partner “McKenna”—signals heightened U.S. investor demand. 

This premium measures the price difference between Coinbase’s BTC/USD pair and Binance’s BTC/USDT equivalent, with a positive spread often indicating bullish sentiment from U.S. buyers.

Institutional players, including hedge funds, family offices, and corporations, are increasingly allocating capital to Bitcoin as a strategic macro asset. This trend reinforces Bitcoin’s transition from speculative digital currency to a recognized store of value and hedge against macroeconomic uncertainty.

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Technical Analysis: Charting Bitcoin’s Path Forward

Technically, Bitcoin’s recent price action exhibits strong bullish characteristics. The consistent weekly gains suggest robust market support and buyer confidence. 

Key technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) remain positive, indicating healthy momentum without yet entering overbought territory.

If Bitcoin surpasses its previous all-time high of $109,358 decisively, it could trigger new buying waves as traders aim to capitalize on the breakout. However, market participants should watch critical support levels around $100,000 and $94,000 to manage downside risks.

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Risks and Market Challenges to Consider

Despite the optimistic outlook, Bitcoin’s path is not without challenges. Macro factors such as potential interest rate hikes, regulatory scrutiny, and geopolitical tensions could exert downward pressure on crypto markets. 

Additionally, Bitcoin’s volatile nature means sharp corrections can occur rapidly, demanding disciplined risk management.

The unusual strength of bids during off-peak times—like Sunday nights—might also reflect speculative positioning ahead of anticipated announcements or economic data releases. While this can fuel momentum, it introduces an element of unpredictability that traders must be prepared for.

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Long-Term Growth and Market Maturation

Beyond the immediate price movements, Bitcoin’s trajectory reflects its evolution into a macro asset. Analyst Willy Woo’s recent analysis of Bitcoin’s compound annual growth rate (CAGR) suggests that as Bitcoin absorbs capital and matures, its explosive growth will moderate to a sustainable annual rate of around 8% over the next 15 to 20 years. 

This forecast situates Bitcoin’s growth between traditional monetary expansion rates (approximately 5%) and global GDP growth (about 3%).

This maturation implies that Bitcoin will increasingly be influenced by global economic fundamentals rather than speculative exuberance alone, marking its emergence as a resilient, long-term store of value.

What Lies Ahead for Bitcoin?

As Bitcoin hovers near its all-time high, several scenarios could unfold:

• Bullish Scenario: Continued institutional inflows, favorable macroeconomic developments, and technical breakouts push BTC beyond $110,000, sparking new market enthusiasm.
  
   

• Consolidation Phase: Bitcoin may enter a range-bound phase around $100,000 to $110,000, digesting recent gains while building momentum for the next major move.
  
   

• Correction Risk: Profit-taking or negative news triggers a retracement toward key support levels, providing buying opportunities for long-term investors.

Read Also: Are We in a Bull Market? Analyzing Bitcoin's Latest Market Movement

Conclusion

Bitcoin’s recent record-setting weekly and daily closes underscore a vibrant and evolving market environment. With technical strength, institutional backing, and growing macro relevance, Bitcoin is carving a path toward maturation as a global macro asset. 

However, investors should balance enthusiasm with vigilance, as volatility and external risks remain inherent in the crypto landscape.

As Bitcoin pushes the frontier of digital finance, staying informed and agile will be critical for capitalizing on its future growth potential.

FAQ

Q: What is Bitcoin’s current price and how close is it to its all-time high?
A: Bitcoin recently closed at just below $106,500 in its highest-ever weekly close, placing it less than 3% away from its all-time high of $109,358 recorded in January 2024.

Q: How long has Bitcoin been on a weekly gain streak?
A: Bitcoin has posted weekly gains for six consecutive weeks, reflecting strong bullish momentum reminiscent of its significant rally in November 2023.

Q: What is the Coinbase premium and why is it important?
A: The Coinbase premium measures the price difference between Bitcoin’s BTC/USD trading pair on Coinbase and the BTC/USDT pair on Binance. A positive premium often indicates stronger buying pressure from U.S. investors, signaling bullish market sentiment.

Q: What technical indicators support Bitcoin’s current price trend?
A: Key technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) remain positive, suggesting healthy momentum without signs of being overbought.

Q: What are the main risks that could affect Bitcoin’s price moving forward?
A: Macro factors like interest rate changes, regulatory developments, geopolitical tensions, and market volatility can all impact Bitcoin’s price, causing potential corrections or price swings.

Q: How is Bitcoin’s long-term growth outlook?
A: Analyst forecasts suggest Bitcoin’s compound annual growth rate (CAGR) will stabilize around 8% over the next 15 to 20 years as it matures into a macro asset influenced by broader economic fundamentals.

Q: Will Bitcoin surpass its all-time high soon?
A: While Bitcoin is showing strong bullish momentum and technical signals supporting a potential breakout, price movements will depend on market conditions, institutional inflows, and external catalysts.

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