5 min readBitcoin has broken out of range and surged to a record high of 118k as the crypto rally gains momentum. Altcoins are a sea of green following Bitcoin higher. ETH is outperforming, rising over 6% today and is above 3000 for the first time this year. The token is up 19% this week. XRP and SOL are trading 2% higher, and DOGE and ADA have risen 5%.
The rally in Bitcoin sparked a wave of liquidations, with short sellers being pummelled. According to CoinGlass, more than $1 billion in short positions were liquidated in the last 24 hours, including $570 million in BTC shorts.
Bitcoin has risen 26% year-to-date, as investors are buoyed by regulatory clarity and digital asset adoption. Institutional and corporate demand have increased significantly, driven by strong demand for BTC ETFs and the growing adoption of Bitcoin treasury strategies by corporations.
While Bitcoin is rising to fresh record highs, hardly anyone is selling. Exchange inflows have dropped to just 18,000 a day, marking the lowest level since April 2015. Whales are quiet, with large BTC transfers to exchanges down 89% since November. This rally is not being met with profit-taking.
It’s also worth noting that the S&P 500, the NASDAQ, and NVIDIA all hit record closing highs. This is unlikely to be a coincidence, suggesting that broader fundamental factors are also at play as investors brush off Trump’s trade tariff developments and remain hopeful of two Fed rate cuts this year.
How high could Bitcoin go?
Bitcoin is focused on the 120k level as the next resistance and an obvious psychological level. A poll of crypto analysts predicts an average price of $145,000 by the end of the year. Meanwhile, Standard Chartered considers that H2 will be Bitcoin’s strongest half ever, hitting 135k in Q3 and 200k in Q4 amid strong corporate and institutional demand and US policy development.
Using the bull flag breakout as a guide for an estimation of where the rally could go, the flag pole provides a target price of 145k.
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Cardano jumps 14%
Cortana, the 10th-ranked cryptocurrency, is up 14% and has rallied over 25% this week, pushing the price back over 0.70 to a monthly high.
According to Coinglass data, open interest for ADA has jumped by 13.66% over the past 24 hours, rising to $970.59 million.
Caught on founder Charles Hoskinson has emphasised the importance of the genius act and clarity act as legislative drivers, which could Phil the next crypto bull run. His comments come ahead of crypto week next week, and the House is expected to consider these bills. Hoskinson believes these acts will stabilise the market and attract substantial institutional capital across Bitcoin and altcoins.
Cardano technical analysis
ADA has recovered from the 0.58 low, breaking above the falling trendline and the 50 SMA, reaching a peak of 0.72. Buyers will look to extend gains towards the 200 SMA at 0.75. A rise above here could see bulls gain traction towards 0.82 and on towards 1.00.
Immediate support is at 0.64, the 50 SMA, and 0.60, the falling trendline support.
Trading involves risk.
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