Bitcoin Buy Signal and Potential to Break All-Time High
Recent market analysis indicates a strong buy signal for Bitcoin (BTC), driven by technical indicators and macroeconomic factors. As of May 20, 2025, Bitcoin is trading around $103,000, following a breakout above the key resistance level of $100,000. Technical indicators, such as the Relative Strength Index (RSI) surging past 67 and a bullish crossover on the Moving Average Convergence Divergence (MACD), suggest robust buying pressure and growing bullish momentum. The Macro Chain Index, which accurately signaled a buy in 2022, has flashed a new buy signal, reinforcing confidence in Bitcoin’s upside potential. Additionally, Bitcoin’s recent breakout from a falling wedge pattern and sustained trading above the 200-day moving average further support a bullish outlook.
Macroeconomic conditions also favor Bitcoin’s rise. A weakening U.S. dollar, coupled with institutional inflows into spot Bitcoin ETFs—evidenced by $603.74 million in net inflows last week—signals increasing adoption. Analysts like Geoff Kendrick from Standard Chartered predict Bitcoin could hit $120,000 in Q2 2025, potentially surpassing its all-time high of $109,588 set on January 20. Furthermore, historical data shows Bitcoin often rallies within 150 days of gold hitting new highs, and with gold currently surging, Bitcoin could target $132,000 by year-end, according to Real Vision’s Jamie Coutts.
The MACD’s recent bearish crossover hints at a possible short-term pullback to $100,000. Investors should monitor support levels at $87,500 and the 200-day EMA at $85,300. If Bitcoin holds above $105,000, it could trigger a rally toward $116,000 or higher, entering price discovery mode. With institutional interest growing and market sentiment leaning bullish, Bitcoin appears poised to break its all-time high, making it a compelling buy opportunity for long-term investors.
