On May 22, 2025, Bitcoin price officially broke its all-time high, surging past $111,800 and entering uncharted territory. While new records always spark excitement, what’s happening under the hood of this rally is what truly sets it apart.
Unlike previous bull runs fueled by excessive leverage and speculative euphoria, this breakout appears driven by organic demand, strong fundamentals, and long-term accumulation — not hype.
Bitcoin Price Analysis – A Historic Breakout above $111,800
Bitcoin’s rally in May has been sharp and structured, with price climbing from $97K to $111.8K in under two weeks. The breakout above previous resistance at $109K was clean and supported by rising volume, signaling strong spot demand.
Source: Tradingview
On the breakout day, BTC closed with a +1.1% daily gain and a full-bodied candle — a sign of bullish conviction. There was no major rejection at the highs, and intraday price action remained controlled.
Momentum indicators like RSI are elevated but not overbought, and the trend remains supported by rising EMAs and solid market structure. This wasn’t a blow-off move — it was a measured breakout, driven by buyers, not hype.
Flat Funding Rates: A Clean Rally Without Leverage
One of the most compelling signals comes from CryptoQuant data: Bitcoin perpetual funding rates remain flat — hovering near neutral even as price pushes to ATH.
Source: CryptoQuant
In previous cycles, such as late 2021 and early 2024, rising BTC prices were accompanied by sharply increasing funding rates, suggesting speculative long positions were piling up. This time, there’s no such leverage build-up.
Translation: This breakout is likely driven by spot demand, not leveraged bets — a rare and healthy dynamic in crypto markets.
Long-Term Holders Are Still Accumulating
Another unusual signal? Bitcoin long-term holder supply is near an all-time high.
According to on-chain data from Bitbo, over 16 million BTC are held by long-term holders, even as the market breaks into price discovery. Historically, these wallets tend to distribute into strength — but this time, they’re not selling.
Source: Bitbo
This suggests a high level of conviction in the asset, and that strong hands are still in control of the market — further supporting the idea that this rally may be more sustainable than prior peaks.
Technical Momentum Is Still Intact
The chart structure is textbook bullish. After consolidating in the $105K–$107K range, bitcoin price broke out with strong volume and clean price action. There’s no parabolic blow-off — yet — and no major bearish divergence in sight.
- Immediate support: $107,500
- Resistance zone: None (price discovery)
- Psychological barrier ahead: $120K
RSI is elevated but not overheated, and moving averages (50/200) continue to slope upward in tandem — reinforcing the trend.
Final Thoughts: Is This the Smartest Bull Run Yet?
This time, the rally is being built on sounder structural foundations:
- Flat funding rates = minimal speculation
- Long-term holders = no mass profit-taking
- Price action = technically clean and gradual
In short: this might be the most sustainable bull market Bitcoin has ever seen. With ETF inflows still strong and U.S. adoption narratives accelerating, $120K may only be the beginning — not the top.
