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Bitcoin‘s (CRYPTO: BTC) rally to almost $106,000 may not yet be its peak, with technical models and macro flows aligning to support a near-term price target of $122,000, according to a report.
The move follows a well-defined breakout above the $84,500 level in mid-April and has been reinforced by strong spot buying and expanding institutional interest, according to a market update from May 12.
What Happened: This week’s data from CoinShares further underpins the bullish thesis.
Digital asset investment products recorded $882 million in inflows globally last week, marking four consecutive weeks of growth and bringing year-to-date inflows to $6.7 billion.
Bitcoin accounted for $867 million of that, continuing to dominate institutional allocations.
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Notably, U.S.-listed Bitcoin ETFs have now amassed a cumulative $62.9 billion in net inflows since launching in January 2024, a record high.
Regionally, inflows were led by the United States ($840 million), followed by Germany and Australia, while Canada and Hong Kong saw small outflows.
CoinShares attributes the increase in inflows to “a global rise in M2 money supply, stagflationary risks in the US and several US states approving Bitcoin as a strategic reserve asset.”
What Experts Are Saying: From a market structure perspective, Bitcoin’s rally has unfolded in $16,000 increments, with clear resistance and support levels established at $73,000, $84,500, and $95,000, all of which have been either broken or successfully retested, according to 10x Research.
After peaking at close to $106,000, analysts suggest that momentum remains intact, with technical models now pointing toward $122,000 as the next major target.
The trade thesis has been driven by long call spreads, specifically $100,000/$110,000, capitalizing on low implied volatility, which remains around 45% despite the ongoing price surge.
“Being long on call spreads was the superior risk-adjusted trade,” the report stated.
Traders are now advised to consider rolling into higher strikes such as $110,000/$120,000.
See Also: Grow your IRA or 401(k) with Crypto – unlock the power of alternative investments including a Crypto IRA within your retirement account.
Interestingly, the rally to $95,000 was driven not by leveraged futures but primarily by spot buying, notably from institutional players like Strategy (NASDAQ:MSTR) and ETF inflows, while many futures traders attempted to short the move.
