Bitcoin soared to a four-month high of $107,000 before easing back to $103,000. Analysts warn of a bull trap, but strong institutional flows and bullish options trading point to further gains.
Bitcoin surged to a four-month peak of $107,000 on Monday before retreating to $103,000, as traders navigated a volatile start to the week marked by mixed sentiment and cautious optimism. At the time of writing, the world’s most valuable cryptocurrency was trading nearly 3% lower on the day.
The sharp move upward earlier in the day marked Bitcoin’s highest level since January 24, according to Coindesk. However, the price retracement prompted speculation among market participants about whether the rally was sustainable or a potential bull trap in disguise.
“Despite continued positive corporate and institutional flows in the form of spot Bitcoin Exchange Traded Funds (ETFs) and Meta Planet’s accumulation, bearish sentiment appears to be gaining ground in the short term,” said Manish Chhetri, analyst at Fxstreet, in a research note.
Data from Coinglass reflected growing caution. Bitcoin’s long-to-short ratio dropped to 0.94, its lowest level in over a month — a sign that more traders are betting on a downward move than an upward one.
Yet, despite the short-term dip, the overall technical structure remains constructive. Analysts pointed out that Bitcoin is still forming a pattern of higher highs and higher lows within an ascending consolidation channel. Meanwhile, its market dominance has risen above 64%, suggesting continued strength relative to other cryptocurrencies.
The options market is also tilting bullish. “Deribit data shows a heavy concentration of call open interest above $100,000, particularly at the $110,000, $115,000 and $120,000 strike prices for May 30, when $8 billion in notional value expires. Call options, which give holders the right to buy BTC at a specific price, are typically used to bet that the price will rise to or above that level,” Coindesk reported.
Simon Peters, Crypto Analyst at eToro, struck a confident tone. “It’s only a matter of time until we see a new all-time high,” he said. “Bitcoin finding support at this level is encouraging as we look ahead to key industry events.”
All eyes are now on Bitcoin 2025, a major global crypto conference scheduled for May 27–29 in Las Vegas. The event is expected to draw thousands of participants and features a high-profile lineup including US Vice President JD Vance, Microstrategy Chairman Michael Saylor, Senator Cynthia Lummis, and David Sacks, who currently serves as the White House’s AI and Crypto Czar.
Market speculation is intensifying around potential announcements concerning the expansion of the US government’s Strategic Bitcoin Reserve, as well as updates on the GENIUS Act and new regulations for stablecoins.
With momentum building and institutional interest holding steady, Bitcoin’s price movements in the coming days could set the tone for the next major phase in the digital asset’s evolution.
