- Bitcoin is nearing its all-time high with strong accumulation across wallet sizes fueling bullish momentum.
- Technical indicators like RSI and MACD suggest a potential breakout, despite overbought conditions.
- A decisive move above $110K could trigger a rapid surge toward $125K, according to John Deaton.
Bitcoin ($BTC) is trading just above $105,400 as of May 21, gaining nearly 3% in the last 24 hours.
The price now presses against a major resistance zone at $106,600, a level where Glassnode identifies a significant supply cluster of 31,000 BTC acquired in December. With these coins largely unmoved, the $106.6K region has become a technical and psychological hurdle for the market.
Despite recent volatility, these holders have not sold or averaged down, which indicates a short-term psychological and technical barrier.
John Deaton Projects $125K as On-Chain Accumulation Builds
Deaton’s statement resonates with the current chart dynamics: once $109K–the all-time high–is broken, there’s little historical resistance to impede a rapid move toward $120K-125K. He further added:
“I have a feeling once $110K is broken, $125K happens much faster than folks think.”
The on-chain accumulation and lack of redistribution around $106.6K make this breakout scenario plausible.
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Glassnode Data Shows Broad-Based Accumulation Ahead of May 21
On-chain data reveals a robust accumulation trend, spanning almost the entire wallet spectrum.
Even retail investors holding less than 1 BTC have shifted from distribution to light accumulation (~0.55 score), joining the larger cohorts such as: 100–1K BTC holders (~0.9) and 1K–10K BTC holders (~0.85).
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The only segment still engaging in net selling appears to be those holding 1–10 BTC. This behavioral shift in wallet dynamics strengthens the bullish thesis, as it indicates growing investor confidence across both institutional and retail classes.
Technical Indicators Strengthen the Bullish Case for BTC
The technical outlook for Bitcoin supports the potential for a breakout. The Relative Strength Index (RSI) sits near 71, which typically signals an overbought market but can also indicate persistent strength in an ongoing rally.
The MACD confirms a bullish crossover, with both lines trending higher and no immediate sign of bearish divergence.
Fibonacci retracement analysis from the $88,834 high to the $70,526 low shows BTC has cleared all major resistance levels, including the crucial 0.786 retracement at $74,441.
Fibonacci extensions to the downside have become irrelevant as Bitcoin maintains its upward trajectory. With accumulation, technical signals, and analyst forecasts aligning, traders are watching the $106.6K zone closely as a possible launchpad for the next major rally.
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