Bitcoin has officially entered a new chapter in the bull market, soaring to an all-time high of nearly $118,800 after several weeks of tight consolidation. This decisive breakout marks a significant turning point in momentum, with analysts predicting a potential explosive rally as optimism returns. Surpassing previous highs not only rekindles interest in BTC but also boosts optimism across the cryptocurrency market.
One of the clearest indicators of the strength of the current cycle is Bitcoin Dominance. According to top analyst On-Chain Mind, BTC's dominance ratio has increased to 65% since the beginning of this bull market. This robust increase indicates a clear preference among investors for Bitcoin over altcoins, solidifying the coin's position as a safe haven in times of volatility and growth.
As Bitcoin leads the rally, market observers believe this breakout could spark a wave of institutional capital flows and attract new attention from retail investors who have been on the sidelines. With growing momentum and increasing confidence, a breakout above $118,000 could just be the beginning of an even larger move, a move that could shape the next phase of the cryptocurrency bull cycle in 2025.
Bitcoin Leads the Revolution
After several weeks of hovering below the $110,000 mark, Bitcoin has finally broken out, opening a new bullish phase and driving the cryptocurrency market as a whole. Altcoins, which had slowed down in recent months, are now surpassing key resistance levels as confidence spreads. This synchronized move occurs against a backdrop of volatile macroeconomic conditions, with market participants increasingly anticipating a weakening US dollar and the return of inflationary policies under President Donald Trump's administration.
With expectations for interest rate cuts approaching and increasing pressure on the Federal Reserve, the market views cryptocurrencies, particularly Bitcoin, as a natural hedge. However, caution remains. US Treasury yields are still high, continuing to warn of systemic stress in the traditional financial system. That stress further enhances Bitcoin's appeal as a non-sovereign monetary asset, with a hard cap.
Bitcoin's dominance has told the story clearly. "At the beginning of this bull market, it was only at 40%. And today? 65%," On-Chain Mind noted, emphasizing that investor interest has completely tilted towards BTC. This dominance reflects a trend that has been virtually unchanged, even as Ethereum and other altcoins try to catch up.

As BTC leads the market, its dominance reinforces its role as the main beneficiary of macroeconomic instability. While the altcoin market is beginning to show signs of recovery, it is clear that Bitcoin remains the anchor, and investors are not yet ready to change that.
4-Hour Chart: Cooling Off After the Breakout
The 4-hour chart of Bitcoin shows a clear breakout, followed by consolidation, a typical sign of strength after a strong volatility. The price surged from the long-standing resistance level of $109,300 to a local high of $118,000 in less than twelve hours, marking an 8% increase. This breakout has reversed the previous resistance into support and triggered strong trading volume, confirming this move.

Trading volume has decreased during this period, characteristic of a bullish consolidation rather than distribution. The 50-period moving average (blue) has crossed above the 100-period moving average (green), forming a short-term golden cross near the $109,000 level. This crossover supports a bullish outlook, with the 200-period moving average (red) trending upwards from the $105,000 level, reinforcing the structure of higher lows.
As long as Bitcoin stays above $112,000, the bulls remain in control. A drop below $109,000 would invalidate the breakout and increase short-term risk. However, if the price can convincingly surpass $118,000, it could open the door for a rally towards the psychological level of $120,000. $BTC