Exclusive: 3 Stunning Reasons Why Bitcoin Could Surge to $125,000
Bitcoin’s Price Action, Accumulation Trends, and Technical Indicators Point to a Major Breakout
As of May 21, Bitcoin ($BTC) is trading just above $105,400, marking a nearly 3% gain in the last 24 hours. The cryptocurrency is currently testing a critical resistance zone at $106,600, a level that has become a significant psychological and technical barrier. According to Glassnode, this zone is backed by a supply cluster of 31,000 BTC purchased in December, which remains unshaken despite recent market volatility.
“BTC stalled just below $106,600. This level holds 31K BTC purchased in December, creating a strong supply cluster. Owners have not redistributed or averaged their holdings, making this a short-term barrier.” – Glassnode, May 19, 2025
This resistance is not just a technical hurdle; it’s a psychological one. Investors who bought at this level are holding firm, signaling confidence in Bitcoin’s long-term potential.
John Dyton Predicts $125,000 as the Next Milestone
Renowned analyst John Dyton has set his sights on $125,000 as Bitcoin’s next major target. Dyton’s analysis aligns with the current market dynamics, suggesting that once Bitcoin breaks through $110,000, the path to $125,000 could be swift and decisive.
“When $110,000 is breached, $125,000 will happen much faster than people think.” – John Dyton
This prediction is bolstered by on-chain data showing minimal redistribution of Bitcoin at the $106,600 level, making a rapid upward move increasingly plausible.
Glassnode Data Reveals Widespread Accumulation
On-chain data from Glassnode highlights a robust trend of accumulation across nearly all wallet sizes. Even retail investors holding less than 1 BTC have shifted from distribution to accumulation, with larger cohorts like 100–1K BTC and 1K–10K BTC holders showing even stronger accumulation signals.
“Accumulation is now visible across almost the entire wallet spectrum. Even holders of <1 BTC have moved from distribution to accumulation, joining larger cohorts like 100–1K and 1K–10K BTC holders.” – Glassnode, May 19, 2025
The only segment still engaged in net sales is the 1–10 BTC holders. This shift in investor behavior underscores growing confidence in Bitcoin’s future, both among retail and institutional players.
Technical Indicators Support a Bullish Outlook
From a technical perspective, Bitcoin’s indicators are painting a bullish picture. The Relative Strength Index (RSI) is hovering around 71, typically signaling an overbought market but also indicating sustained momentum. The MACD confirms a bullish crossover, with both lines trending upward without signs of bearish divergence.
Fibonacci retracement levels from the recent high of $88,834 to the low of $70,526 show that Bitcoin has cleared all major resistance levels, including the critical 0.786 level at $74,441. With Fibonacci extensions becoming less relevant, Bitcoin’s upward trajectory appears unstoppable.
Key Takeaways:
- Bitcoin is testing a critical resistance zone at $106,600, backed by a strong supply cluster.
- John Dyton predicts a swift move to $125,000 once $110,000 is breached.
- On-chain data shows widespread accumulation, signaling growing investor confidence.
- Technical indicators like RSI and MACD support a continued bullish trend.
Disclaimer: The information provided in this article is for educational and informational purposes only. It is not financial advice. Always conduct your own research before making any investment decisions.
FAQ
Q1: What is the current price of Bitcoin?
A1: As of May 21, Bitcoin is trading just above $105,400.
Q2: Why is $106,600 a significant level for Bitcoin?
A2: This level is a major resistance zone backed by a supply cluster of 31,000 BTC purchased in December, creating a psychological and technical barrier.
Q3: Who is John Dyton, and what is his prediction for Bitcoin?
A3: John Dyton is a renowned analyst who predicts Bitcoin could surge to $125,000 once it breaks through $110,000.
Q4: What does on-chain data reveal about Bitcoin’s accumulation?
A4: Glassnode data shows widespread accumulation across nearly all wallet sizes, indicating growing investor confidence.
Q5: What technical indicators support a bullish outlook for Bitcoin?
A5: The RSI and MACD both indicate sustained momentum, with no signs of bearish divergence.
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