Bitcoin Rallies to a New All-Time High of $109,874

• Bitcoin rallies to hit a new all time high of $109,874

• BTC could rally to $115k after the recent breakout

Bitcoin Hits a New All Time high

After weeks of consolidation, Bitcoin broke out and reached $107k on the last day. After this breakout, BTC has rallied to hit a new all-time high of $109,874.

This new high comes after 121 days, also setting records in its market capitalization and realized cap. After the recent rally, its realized cap has spiked to $911.5 billion while its market cap has reached $2.17 trillion.

Bitcoin's price movement since its all-time high, illustrating fluctuations and trends from early November to mid-May.

 Additionally, the 24-hour trading volume has jumped nearly 30% to $66.5 billion, signaling a notable spike in interest and activity.

Read also: Bitcoin wallets are buying again

Amidst the strong price surge are strong fundamentals and a bullish derivatives market.  The king of crypto has gained nearly 6% over the past 7 days, and the backdrop suggests traders remain firmly in "risk-on" mode.

Derivatives Market Shows Bulls in Control

Our analysis of the derivatives market indicates that bulls have taken control of the market. Bitcoin's options volume spiked over 68% to $5.74 billion, while options open interest climbed 4.30%, signaling traders are actively positioning for volatility likely upside. Futures open interest rose by 12.45% to $79.97 billion, suggesting more capital is flowing into support BTC’s continued move.

Bitcoin derivatives see significant growth with a 44.26% increase in volume, reaching $167.94B. Options volume surges by 68.21%, and open interest grows by 12.45%. Long/short ratios across exchanges indicate active trading dynamics.

Long/short ratios are also tilted toward optimism. The 24h long/short ratio is 1.0296, implying a slight edge toward long positions. More significantly, top trader positioning on Binance shows a long/short ratio of 1.5193 — a clear vote of confidence by smart money.

What Comes Next?

Undoubtedly, Bitcoin is experiencing bullish sentiment in both spot and derivatives markets, and BTC looks poised for further upside.

For example, Bitcoin's RSI is currently hovering around 75, indicating overbought conditions, yet still pointing up. While this could suggest a short-term pullback is possible, historically, BTC can remain overbought for extended periods during strong bull cycles.

Equally, the MACD also supports the bullish narrative. The MACD line remains above the signal line, with widening distance, and the histogram remains in positive territory.

Therefore, the price momentum is clearly favoring buyers.

The continuation of the rally as bulls take over the market will see Bitcoin face resistance at the psychological resistance near $110k and $115k.

A correction, also see the crypto retrace to the short-term support around $105k.

Overall, the technicals and fundamentals align for Bitcoin bulls, and the market appears to be gearing up for a sustained rally unless disrupted by macroeconomic surprises or profit-taking pressure.