Bitcoin Price Crosses All-Time High? Check Out the Following Explanation

Bitcoin’s price resurgence continues and finally hit new ATH with the price hovering around $111,000 as of May 22 after crossing “golden cross” formation at $106.889.

Check out the explanation of the latest BTC prices in this article until the end.

Golden Crosses and Their Track Record

Bitcoin has previously responded positively to golden cross formations. According to analyst Benjamin Cowen, past occurrences led to 45%-60% price increases. For example:

1. In October 2023, BTC surged 45% following a golden cross, buoyed by optimism surrounding spot Bitcoin ETFs.

2. In September 2021, a similar crossover preceded a 50% rally.

3. Following the 2024 U.S. presidential election, with Donald Trump re-elected, BTC posted a 60%+ gain, attributed in part to expected policy shifts.

However, it’s important to note that golden crosses are not infallible. In February 2020, just before the COVID-19 pandemic struck global markets, a golden cross was followed by a 62% crash—highlighting the need to consider broader economic indicators.

Current Technical Setup: Bullish but Cautious

As of mid-May 2025, Bitcoin’s 50-day SMA is trending upward and approaching a cross above the 200-day SMA. While the setup leans bullish, analysts are warning of a possible short-term correction before a full-fledged breakout.

Bitcoin’s Relative Strength Index (RSI) recently crossed above the overbought threshold of 70, often a precursor to pullbacks.

BTC could retest support levels around $115,400 to $120,000 before resuming its upward trend.

A bearish divergence between rising prices and falling RSI supports the case for a temporary dip.

Still, macro conditions appear favorable. Factors such as an expanding M2 money supply, easing U.S.-China trade tensions, and improved investor sentiment provide strong tailwinds.

Macro Tailwinds Support Bitcoin’s Ascent

Recent developments have added fuel to Bitcoin’s rally:

1. President Trump has rolled back tariff threats, easing global trade tensions.

2. Traditional equity markets, like the S&P 500 and Nasdaq, have reacted positively, with BTC following suit as a risk-on asset.

3. Crypto liquidations have surged, with $233 million wiped out in the past 24 hours, over half from short positions—indicating growing upward pressure.

Other cryptocurrencies are also riding the wave. Over the past month:

1. Ethereum (ETH) has climbed 58%,

2. Dogecoin (DOGE) is up 45%, and

3. Solana (SOL) has risen nearly 23%.

No Signs of a “Double Top” Reversal

Despite Bitcoin’s price hovering near its all-time high, concerns about a potential double top—a bearish reversal pattern—are being dismissed by some analysts.

Private wealth firm Swissblock Technologies notes that Bitcoin’s Fundamental Index (BFI) remains solidly neutral, showing no signs of weakening. Their on-chain analysis suggests BTC’s bullish structure is intact, with no bearish divergence to validate a major reversal.

Market Consolidation: A Healthy Pause

Bitcoin briefly dipped to $109,000 during the recent U.S. trading session but rebounded above $111,900, marking a modest daily decline amid broader profit-taking.

Market analyst Ruslan Lienkha of YouHodler describes this as a normal pullback within a medium-term uptrend, noting that anything below a 5% price fluctuation is often just “market noise.”

Kirill Kretov of CoinPanel adds that thin liquidity can exacerbate small sell-offs, making corrections appear more dramatic than they are.

Institutional Confidence Remains Strong

Analysts at K33 Research highlight that BTC recently exited a long stretch of below-neutral funding rates, suggesting a lack of speculative excess that often precedes market tops.

Meanwhile, Steno Research points to a stealth expansion of Western private credit as the true driver of the current crypto rally, not Chinese liquidity injections as previously thought. This quiet stimulus could continue supporting crypto prices through June and early July, though analysts warn that conditions may tighten again in late summer.

Forecast: New Highs Within Reach

According to network economist Timothy Peterson, historical data shows that when Bitcoin trades within 10% of its all-time high, it sets a new one 98% of the time within 50 days.

Based on this, Peterson expects BTC to hit at least $115,000 by late June, with some models projecting $125,000 or even $150,000 by the end of the summer.

Conclusion

With strong technical signals, robust macroeconomic tailwinds, and increasing institutional conviction, Bitcoin is well-positioned for a potential breakout to new all-time highs. While short-term volatility and corrections are likely, the broader outlook remains optimistic.

As Bitcoin nears the confirmation of its golden cross and inches closer to price discovery mode, traders and investors should remain attentive—but not overly reactive—to market noise, and instead focus on the evolving macro-technical landscape guiding this historic rally.