As shown on the BTC/USD chart, the Bitcoin price has broken above the $110K mark, setting a new all-time high around $111,800.

This move highlights the strength of the leading cryptocurrency, which has surged nearly 50% in just over one and a half months, rising from a low near $75K recorded in early April.

What’s Driving Bitcoin’s Price Higher?

One of the key drivers is weakness in the US dollar. In April, the US Dollar Index hit its lowest level in three years and remains close to that low at the end of May. According to Reuters, downward pressure on the dollar is being caused by:
→ a lacklustre Treasury bond auction yesterday;
→ currency traders’ expectations surrounding the potential impact of President Donald Trump’s proposed legislation on significant tax and spending cuts.

On the other hand, crypto enthusiasts welcomed the news that the Texas House of Representatives has passed a bill allowing state investments in Bitcoin. Once signed by the governor, the law could make Texas the first US state to hold Bitcoin in its reserves.

Technical Analysis of the Bitcoin Chart

In our previous analysis on 8 May, we:
→ extended the long-term upward channel (marked in blue);
→ suggested that momentum had shifted in favour of the bulls and focused on how BTC/USD might behave when testing the key psychological level of $100K.

As indicated by the arrow, the break above $100K was strong — marked by a wide bullish candle that closed at its high — after which the bulls continued to push BTC/USD higher. This has resulted in the formation of a new ascending channel (shown in black).

Reaching a new all-time high may prompt some buyers to take profit following the May rally, which could lead to a correction — potentially down towards the dotted black line, which runs parallel to the current black channel but sits lower.

In the most optimistic scenario, the price of the leading cryptocurrency could rise toward the upper boundary of the long-standing blue channel, whose relevance we have been highlighting for many months.

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