Bitcoin has closed its strongest weekly candle in history, setting the stage for what many analysts believe could be a fresh leg up in the ongoing bull cycle. Surpassing previous highs, the benchmark cryptocurrency recorded a weekly close above $110,000, igniting conversations across the digital asset landscape. With increasing institutional interest, positive macro signals, and an invigorated retail base, the market now turns its focus to the possibility of Bitcoin reaching $112K and beyond. This article explores the latest developments surrounding Bitcoin’s price action, evaluates the catalysts behind its upward trajectory, and assesses the factors that could influence its next major move.
Bitcoin’s Historic Weekly Close
The most recent weekly candle closed at approximately $110,500, marking the highest weekly closing price in Bitcoin’s 15-year history. According to data from TradingView and CoinMarketCap, the close above the psychologically significant $110K level confirms a strong bullish continuation pattern on higher timeframes. Historically, such formations often precede rapid price expansions, particularly when supported by volume and fundamental catalysts.
This technical milestone is even more significant given its timing. The record close coincides with increasing capital inflows from institutional players, including hedge funds and asset managers actively deploying funds through regulated exchange-traded products such as BlackRock’s and Fidelity’s spot Bitcoin ETFs. As on-chain analytics platform Glassnode reports, ETF inflows have averaged over $400 million daily for the past two weeks, underscoring a structural shift in demand dynamics.
Institutional Tailwinds and Market Structure
The role of institutional investment in Bitcoin’s recent price performance cannot be overstated. Since the U.S. Securities and Exchange Commission approved multiple spot Bitcoin ETFs in early 2025, Bitcoin’s exposure to traditional capital markets has grown dramatically. Institutional platforms like Bloomberg Terminal now feature real-time Bitcoin metrics, and trading desks at Goldman Sachs and JPMorgan are offering crypto-linked products to clients, signalling a paradigm shift in how Bitcoin is perceived across financial institutions.
Furthermore, Bitcoin’s correlation with macro assets such as the S&P 500 and gold has notably declined, according to data from Arcane Research. This growing independence positions Bitcoin as a unique macro hedge, appealing to investors seeking alternatives in an increasingly uncertain global economy.
Macro Factors Supporting the Next Rally
Several macroeconomic factors are contributing to Bitcoin’s strength. First, U.S. inflation data continues to trend downward, increasing the likelihood of an interest rate cut by the Federal Reserve in the next quarter. Lower interest rates traditionally support risk assets, including cryptocurrencies, by boosting liquidity and investor appetite.
Additionally, geopolitical instability and currency devaluation across several emerging markets have reignited interest in decentralised assets. From Argentina to Turkey, citizens are turning to Bitcoin as a store of value amid domestic economic challenges. As reported by Reuters, Bitcoin trading volumes on local exchanges in Latin America have reached multi-year highs, reflecting growing grassroots adoption.
Technical Indicators Pointing to $112K
From a technical analysis standpoint, Bitcoin’s momentum remains firmly bullish. The Relative Strength Index (RSI) on the weekly chart is nearing but not yet in overbought territory, suggesting room for further upside. Support at the $105K–$107K level has been repeatedly tested and held, solidifying it as a key demand zone.
Fibonacci extension tools place the next major resistance at the $112,000 to $114,500 range, which aligns with historical price projection models. Crypto analysts, including Michaël van de Poppe and Will Clemente have noted that a break above $112K could trigger a parabolic phase, potentially pushing Bitcoin toward $120K in the near term, provided that volume supports the move.
On-Chain Metrics Confirm Bullish Sentiment
On-chain data supports the current bullish trend. According to CryptoQuant and Santiment, exchange reserves of Bitcoin have dropped to a 5-year low, signalling reduced selling pressure. Long-term holders remain unmoved, while short-term holders are beginning to take profits—an expected pattern during a strong bull rally.
Network health also remains robust, with hash rate and mining difficulty both trending upwards, reflecting increased confidence from miners post-halving. The recent halving event in April 2024 reduced block rewards to 3.125 BTC, further tightening supply and acting as a long-term deflationary pressure on price.
Role of Retail and DeFi Momentum
Retail interest is resurging, albeit more gradually than in previous cycles. Data from Google Trends shows a steady rise in searches related to Bitcoin price predictions, crypto investing, and DeFi platforms. Layer-2 networks like Arbitrum and Base are experiencing an uptick in activity, suggesting that retail participants are exploring decentralised finance alongside holding Bitcoin.
Wallets holding between 0.1 and 1 BTC have increased by 3% over the last 30 days, according to Glassnode. This points to growing retail accumulation and greater decentralisation of Bitcoin ownership, a healthy sign for long-term market sustainability.
Summary
All signs currently point to Bitcoin being well-position to challenge the $112K level in the coming days or weeks. Institutional momentum, macroeconomic tailwinds, and strong technical indicators are converging to support further upside. However, market participants should remain cautious and vigilant of both macro shocks and internal crypto dynamics that could alter sentiment quickly.
As Bitcoin continues to mature, its ability to withstand volatility while gaining mainstream traction strengthens its case as a foundational digital asset for the 21st century. Whether the next move is a breakout or a brief consolidation, Bitcoin’s record-setting weekly close marks a turning point in the current market cycle—with $112K potentially just the beginning of the next surge.
