Bitcoin Sets New All-Time High Above $116.5K, Fueled by Institutional Demand

• Bitcoin has smashed a new all-time high and is now consolidating its gains at the $116,500 level
• The rally is fueled by deep institutional conviction, including a massive $340 million leveraged long bet
• This is backed by a historic supply squeeze, with BTC inflows to exchanges at their lowest since 2015

Bitcoin is establishing a new foothold at a record all-time high, trading in a tight range around $116,500 on Friday morning. This period of consolidation comes after a powerful rally that set a new peak and suggests the market is now gathering strength for its next major move.

The world’s largest cryptocurrency has shown remarkable strength, with its market capitalization now firmly holding above that of the tech giant Alphabet (Google).

The New Trading Range: Consolidating at the Top

After surging to its new all-time high, Bitcoin’s price is not seeing a sharp rejection. Instead, it is building a new support base in the $116,500 to $116,600 range. 

This type of consolidation at a new peak is viewed by many technical analysts as a very bullish sign, as it indicates that new buyers are absorbing the profit-taking from earlier investors and are creating a new, higher floor for the price.

Factors Driving the BTC Breakout

This new market structure was made possible by the powerful rally earlier in the week. That move was fueled by a combination of factors, including a massive short squeeze that liquidated hundreds of millions in bearish bets.

Underneath the short-term volatility, the rally has been supported by clear evidence of sustained institutional demand. Inflows into the U.S. spot Bitcoin ETFs have remained consistently strong, and on-chain data has shown that large-scale “whale” investors have been steadily accumulating. 

This institutional confidence is happening against a favorable macroeconomic backdrop, where a weakening U.S. dollar is making hard assets like Bitcoin more attractive

In particular, this latest leg up appears to be driven by three specific factors:

1. A Regulatory Tailwind: Positive sentiment is growing around the confirmation of a new, pro-crypto leadership at the U.S. Office of the Comptroller of the Currency (OCC), signaling a more favorable regulatory environment ahead.
2. A Massive Institutional Bet: The institutional trading firm AguilaTrades has reportedly opened a $340 million leveraged long position in Bitcoin, a massive, high-conviction bet on the price continuing to rise.
3. A Technical Breakout: The price has successfully broken and is now holding above key Fibonacci resistance levels, a strong signal for technical traders that the uptrend is intact.

Underlying Strength: A Classic Supply Squeeze

The derivatives market has witnessed an explosive rise in activity. Trading volume surged by over 85%, reaching an impressive $110 billion. Open interest also climbed by 10%, totaling $83 billion in outstanding derivative contracts. 

Additionally, Bitcoin options volume nearly doubled, growing by almost 98% to reach $6.28 billion. Options open interest followed suit, rising to $43.8 billion.

Related: Bitcoin Whales Move $1B in BTC in Hours After Dormant Investor Wakes Up to 3,176,464% ROI

These figures indicate increasing market engagement and growing confidence among traders. Significantly, liquidation data shows that short sellers bore the brunt of the recent rally. 

Over the past 24 hours, $312 million in positions were liquidated, with short positions accounting for $302 million of that. This imbalance highlights the strength of Bitcoin’s price surge.

Exchange Inflows Hit Multi-Year Lows

CryptoBusy notes a striking trend: Bitcoin exchange inflows have fallen to just 18,000 BTC per day, the lowest since 2015. Consequently, fewer holders are moving coins onto exchanges, suggesting they expect higher prices ahead. This sharp decline in inflows points to reduced selling pressure, creating conditions for sustained price growth.

Previously, in November 2024, inflows peaked at 81,000 BTC per day, coinciding with a price rally. Now, despite lower exchange activity, Bitcoin’s price continues to climb, reflecting bullish sentiment. 

Key resistance remains at $115,000, with strong support around $95,000. If inflows stay muted, demand could outpace supply, pushing prices even higher.

Classic Inverse Head and Shoulders Breakout

Dan Gambardello highlights Bitcoin’s technical breakout from an inverse head and shoulders pattern. This bullish chart formation, completed at around $109,000, suggests further upside. The breakout aligns with Bitcoin surpassing its previous all-time high, confirming strong market momentum.

Moreover, the golden cross formation where the 50 EMA rises above the 200 EMA adds to the bullish case. The measured move from this pattern points to a possible target beyond $120,000. Bitcoin’s macro breakout, combined with rising volume, suggests the rally could continue.