Bitcoin (BTC) surged past the $105,000 mark on May 20, marking a sharp 3% daily gain and igniting new excitement in the crypto community. For investors wondering what’s behind this momentum, the answer lies in a combination of institutional interest, technical indicators, and surging futures activity—factors that together suggest this might be more than just a short-term bounce.
According to data from TradingView, Bitcoin’s price touched an intraday high of $107,148 after dipping to around $102,100 the previous day. That’s a nearly 5% move in just 24 hours, and it’s not just retail traders who are watching closely—big money is stepping in as well.
ETF Inflows Signal Strong Institutional Appetite
One of the most significant drivers behind Bitcoin’s current rally is the resurgence of capital into spot Bitcoin exchange-traded funds (ETFs). For 18 of the past 21 trading days, these funds have seen consistent inflows, accumulating nearly $7 billion over a three-week span, according to Farside Investors.
This trend points to growing institutional confidence in Bitcoin’s long-term value. Data from CoinShares backs this up—last week alone saw $785 million pour into crypto investment products, $557 million of which went straight into Bitcoin.
And it’s not just ETFs doing the buying. Corporate whales are making waves too. MicroStrategy—now rebranded as “Strategy”—recently acquired 7,390 BTC, a haul worth approximately $765 million. Japan-based Metaplanet also jumped in with a 1,004 BTC purchase, adding about $129 million worth of Bitcoin to its balance sheet.
These acquisitions reflect a growing perception of Bitcoin not just as a speculative asset, but as a strategic reserve currency.
Futures Market Shows Rising Bullish Bets
Bitcoin’s rise hasn’t gone unnoticed in the derivatives market either. Open interest (OI)—a measure of the total number of open futures contracts—has exploded to a record high of $72.63 billion as of May 20, up from $57.1 billion just a month ago, according to CoinGlass. That’s a staggering 27% rise in open contracts, pointing to a surge in leveraged bets on Bitcoin’s price appreciation.
Furthermore, data from CryptoQuant shows that CME futures OI—often seen as a proxy for institutional trading activity—has hit a 90-day high of 157,875 BTC, worth about $16.76 billion. These are levels not seen since Bitcoin’s last major bull run in late 2024.
Such heightened futures activity often accompanies strong bullish sentiment, as traders place high-stakes bets in anticipation of upward movement.
Technical Analysis: A Bullish Pattern in Play
On the charts, Bitcoin is also flashing a bullish signal through a classic “cup-and-handle” pattern. This formation, which began taking shape in mid-December 2024, is known for preceding major breakouts. The “cup” represents a rounded bottom, and the “handle” is a short consolidation before a breakout.
BTC now appears to be breaking above the “handle” range, with its neckline resistance sitting at around $106,000. A confirmed daily close above that level could pave the way for a move toward the $109,000 resistance—just shy of its previous all-time high of $108,000 from December 2024.
Should that ceiling break, the pattern projects a bullish target near $138,000—a potential 31% upside from today’s price.
What’s Next?
While technical and market fundamentals are aligning for Bitcoin, investors should still be mindful of volatility. That said, the convergence of ETF inflows, strong futures market activity, and bullish chart patterns suggests that this rally may have deeper roots than previous spikes.
Whether BTC can push to new highs this week remains to be seen, but one thing is clear: institutional interest is not only back—it’s intensifying.
