Bitcoin Takes a Breather After Hitting Record Highs
After a strong rally that pushed it into uncharted territory, Bitcoin (BTC) appears to be taking a short pause. The world’s leading cryptocurrency is now consolidating near its recent all-time highs.
As of 9:54 AM on Friday, May 23, Bitcoin was trading at approximately $110,886.55, down 0.40% over the past 24 hours. During this time, it moved between $110,293.12 and $111,970.17, according to data from CoinMarketCap. Bitcoin's market capitalization remains robust at $2.2 trillion, solidifying its position as the largest cryptocurrency by market value.
🔼 Resistance at $112,600, Support at $108,700
According to Alankar Saxena, Co-founder and CTO at Mudrex, Bitcoin is currently stabilizing around $111,500 after recently touching a new all-time high of $111,970. He credits strong institutional inflows for the continued momentum, noting that spot Bitcoin ETFs saw over $600 million in net inflows in just one day. Saxena also pointed out that the U.S. Dollar Index has dropped more than 2.6% over the last 10 days, enhancing Bitcoin's appeal as a hedge against inflation.
Looking ahead, Vikram Subburaj, CEO of Giottus Crypto Platform, believes the rally may still have legs in the short term, with $115,000 as the next key target. However, he also warned of a possible pullback due to Bitcoin’s overbought conditions, though it could mirror the extended rally seen in December 2024. Market sentiment remains highly optimistic, as the Crypto Fear & Greed Index has climbed to 78, signaling Extreme Greed.
From a technical standpoint, Saxena notes that Bitcoin now faces resistance at $112,600, while support has moved to around $108,700.