Bitcoin Surges Past $110,000, Eyes $120,000 Milestone
Bitcoin (BTC) is on a roll, hitting a new all-time high of $111,880 on Thursday. The cryptocurrency is now aiming for the $120,000 mark. On-chain data supports this bullish trend, with open interest at record highs and low exchange inflows, suggesting reduced selling pressure. Further boosting confidence, the Texas Senate has approved the Strategic Bitcoin Reserve bill, signaling growing institutional support.
Bitcoin Price Soars as On-Chain Metrics Shine
Data from CoinGlass reveals that Bitcoin futures open interest (OI) exceeded $80 billion on Thursday, a new record. This indicates strong market engagement. Rising OI suggests fresh capital entering the market, potentially fueling Bitcoin’s ongoing price recovery.
Selling pressure remains contained, as evidenced by low exchange inflows. According to a CryptoQuant report, Bitcoin inflows to exchanges are around 22,000 BTC, a significant drop from the 121,000 BTC seen in November when Bitcoin first crossed $100,000.
Historically, higher exchange inflows have signaled increased selling pressure. The current low levels suggest investors are less inclined to sell, which could support further price increases.
Adding to the positive metrics, individual deposits to exchanges have fallen sharply from 98,000 in November to just 29,000 on Wednesday. This reinforces the view that investor selling activity remains limited despite high prices.
USDT inflows to exchanges further support the bullish outlook. On Wednesday, USDT inflows hit a new all-time high of $46.9 billion. Growth in stablecoin balances indicates increased market liquidity, which generally supports digital asset prices.
Texas Advances Bill to Create Strategic Bitcoin Reserve
The Texas House is moving forward with Senate Bill 21 (SB21), known as the Texas Bitcoin Reserve Bill. The bill proposes creating a Strategic Bitcoin Reserve in Texas, allowing the state to invest in Bitcoin and other top-tier digital assets. Only cryptocurrencies with a 12-month average market capitalization of at least $500 billion, such as Bitcoin, will be eligible. This ensures the focus remains on established assets.
SB-21 is now headed to the Texas Governor for final approval. If signed, Texas could become a pioneer in state-level digital asset reserves, potentially setting a precedent for others and influencing national policy on cryptocurrency integration.
Texas Strategic Bitcoin Reserve bill SB21 officially PASSES and goes to Governors desk for final signature
Institutional demand continues to support Bitcoin’s price increase. According to SoSoValue data, U.S. spot Bitcoin Exchange Traded Funds (ETFs) recorded an inflow of $608.99 million on Wednesday, continuing a six-day streak of inflows since May 14. Bitcoin’s price should benefit if institutional inflows continue and intensify, bringing it closer to its next key milestone at $120,000.
Bitfinex notes that key levels to watch are $114,000-$118,000 (minor liquidity walls) and then $123,000-$125,000, where significant open interest in options is accumulating.
Bitcoin Price Forecast: BTC Bulls Target $120,000
On Wednesday, BTC rebounded and broke above its previous all-time high of $109,588. As of Thursday, it continues to trade upward, setting a new ATH of $111,880.
BTC is entering a price discovery mode. If it continues its upward trend, it could extend the rally toward a key psychological level of $120,000.
The Relative Strength Index (RSI) on the daily chart is at 76, above the overbought level of 70, indicating strong bullish momentum. However, traders should be cautious as the chances of a pullback are high due to the overbought condition. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator also showed a bullish crossover on Wednesday, giving buy signals and indicating an upward trend.
If BTC faces a pullback, it could extend the correction to retest key support at $105,000.
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