Bitcoin price has come into the limelight yet again, dominating headlines as it crossed $105,000 in a quick and strong upsurge. Bitcoin price has surged almost 24% in the last 30 days from $75,000 to a three-month high of $105,720. This meteoric ascent of the Bitcoin price has created a combination of excitement and worry for investors, as warning signs start to appear in institutional and retail markets. On May 12, even though it hit the top, the price of Bitcoin dropped back to $102,000, not because of crypto developments but because of global macro changes such as the US-China trade developments. This sudden response indicates that the price of Bitcoin is now heavily linked to broader financial tides.
While some traders are popping the champagne, others are slamming on the brakes. The velocity of this rally—$30,000 in a month—has prompted many to wonder if the price of Bitcoin can sustain above the key $105,000 level or if a sharp reversion awaits in the near future.
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Increasing Institutional Dominance and Market Vulnerability
One of the largest shifts in the present scenario is the institutional players influencing the Bitcoin price. Michael Saylor’s company bought more than 13,000 BTC within a week, with BlackRock still aggressively building its stash. Together, these behemoths command almost 6% of the entire Bitcoin price market supply. While this indicates robust confidence, it also sends power-hoarding signals. Should one of these whales choose to dump during a slump, Bitcoin’s price may blow out rapidly, spreading panic throughout exchanges.
Retail interest, though, seems to be waning. Google Trends indicates a precipitous drop in “Bitcoin” search activity, while the price of Bitcoin reaches new record highs. This disconnect between institutional push and retail reluctance is not something seen frequently and can be a short-term indication of an unsustainable trend.
Technical Indicators: Bullish Support or Overbought Trap?
The technical chart for the price of Bitcoin is favorable but inclined towards caution. The Fear and Greed Index is high at 70, signaling an overheated market. The RSI (Relative Strength Index) for the price of Bitcoin also remains in the 70–75 region, the typical signal for an overbought market that could be due for a pullback.
However, long-term charts reflect strength. Both the 50-day and 200-day moving averages of the Bitcoin price are increasing steadily, with MA50 providing good support at the $95,000 level. The MVRV Momentum Index indicates that the Bitcoin price still reflects bullish momentum in the long term. Nevertheless, consolidation within the tight $101,500–$104,000 range shows indecision. Any major news may be followed by a sharp correction or a strong breakout.
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Global Economy and Its Ripple Effect on Bitcoin
Macro trends in the broader world outside of the crypto bubble are taking a bigger-than-normal bite into the price of Bitcoin. Better US-China trade relations have led some focus back to conventional equities, sopping up some of the near-term demand for hedge instruments like Bitcoin and gold. Higher interest rates and inflation fears also put investors off high-risk assets.
Meanwhile, Bitcoin ETFs keep drawing funds, with more than $2 billion of inflows in the period May 1–9 alone. This indicates that even though there have been temporary changes, confidence in the future of the Bitcoin price remains high. Analysts still predict a possible breakout to $138,500 by year-end—if the rally can hold and does not blow off in a panic sell-out.
So, What’s the Best Move Now?
If you’re watching the Bitcoin price from the sidelines or already invested, now is the time to be rational, not emotional. This might not be the moment to go “all in,” but rather a time to reassess risk, lock in some profits, and diversify. The fundamentals remain strong, and the long-term potential of the Bitcoin price looks promising. But in a climate where fear can turn to panic instantly, safeguarding your profits should be your highest priority.
Remain vigilant, remain aware—and never forget: no one ever lost any money by taking profits.
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