- Bitcoin eyes $130K as bullish pennant, RSI, and MACD signal ongoing upward momentum.
- $100M ETF inflows and 420K BTC at $94K cost basis highlight strong institutional demand.
- Positive stock market trends and trade deal rumors fuel broader risk-on sentiment for BTC.
Bitcoin is currently trading at $107,122.77 after recently breaking its previous all-time high. Analysts and traders suggest that the current rally may only be the beginning. With strong technical patterns, institutional flows, and historical cycles in play, $130,000 BTC is being considered as a near-term target.
Technical Setup Suggests Momentum Toward $130,000
According to analysis prepared by Gert van Lagen, Bitcoin is completing Wave 5 of a long-term Elliott Wave cycle. This wave, seen on high-timeframe charts, represents the final bullish leg in a halving-driven cycle.
He predicts that BTC could reach $325,000 by July 2025, though $130,000 is a more immediate level to monitor. On May 25, trader Cas Abbe observed that BTC formed a bullish pennant after bouncing from $66,000.
Despite low liquidity and the closure of $1 billion in long positions, sellers failed to break support. The RSI on the daily chart stood at 58, while the MACD showed a bullish crossover, pointing to ongoing strength.
Institutional Activity and Macro Trends Support Further Upside
According to data from Bloomberg, Bitcoin ETFs saw $100 million in net inflows in the week ending May 24. The iShares Bitcoin Trust was among the top contributors. Glassnode reported that over 420,000 BTC have a cost basis around $94,000, suggesting accumulation from institutional holders.
Market conditions are also favorable. The S&P 500 and Nasdaq Composite rose on May 24, gaining 0.5% and 0.7% respectively. Cross-market risk-on sentiment has historically supported BTC rallies. TeddyCleps stated, “BTC just broke an all-time high,” adding that consolidation is healthy before another move upward.
Meanwhile, a potential U.S.-India trade deal could boost risk sentiment across markets. If BTC holds above $105,000 and breaks $111,000 again, $130,000 may be the next major resistance. Trading volumes continue to rise, and on-chain data supports the ongoing bullish trend.
