Bitcoin skyrockets to a record high of $110,946 on May 21, 2025, fueled by easing US-China trade tensions. Yet, a massive sell wall and technical signals hint at an impending correction. Let's analyze the crypto market dynamics amid long-term optimism and short-term risks.
On May 21, 2025, Bitcoin (BTC) reached a historic milestone, hitting $110,946, a spectacular surge driven by a favorable macroeconomic backdrop. This achievement comes nine days after the signing of a 90-day trade deal between the United States and China, temporarily ending months of market tensions worldwide.
This lull has reduced economic uncertainty, boosting investor risk appetite, including in the cryptocurrency sector. According to Aurélie Barthere, an analyst at Nansen, “the tariff suspension and cooperative tone of the negotiations eliminated the risk of sudden escalation, energizing risk assets like Bitcoin.”
BTC recorded an impressive 26% rise in May, confirming its role as a favored asset in a stabilized economic environment. This correlation between macroeconomics and Bitcoin’s performance underscores the increasing influence of geopolitical factors on cryptocurrencies.
However, not all signals are green for Bitcoin. As highlighted by analyst @KillaXBT on X, a massive sell wall has been detected between $109,000 and $110,000, with over 600 BTC for sale at $110,000.
This sell wall, visible on order books, represents strong resistance that could impede BTC’s progress. “This could be a spoof, but if these sell orders start to get absorbed, we could see a rapid drop to $100,000,” warned @KillaXBT.
The $100,000 level corresponds to a major psychological support, often cited by analysts as a key zone for a potential recovery or consolidation.
Moreover, @RaiyanBinK39871 noted a buy wall of $114.7 million (1,100 BTC) at $105,800 on Binance Futures, indicating buying interest at lower levels that could cushion a potential correction.
Analyst @sunnydecree shared a concerning technical perspective. His chart shows that Bitcoin recently peaked at $110,946, but a significant correction brought it down to $106,566 at the time of analysis. “The RSI (Relative Strength Index) is in overbought territory, indicating a possible market overheating,” he commented. The RSI, a momentum indicator, suggests that Bitcoin could be in an overbought phase after such a rapid increase, increasing the chances of a short-term correction.
On the other hand, the 3-day Fibonacci Bollinger Band indicates a target of $113,000, while the daily chart points to a target of $111,000. These two prices could be reached in the coming days if demand continues to flow. Subsequently, $116,000 and $125,000 are on the bulls’ radar.
Some experts even mention a target of $200,000 by the end of 2025, as predicted by Bernstein in their October 2025 report.
In conclusion, Bitcoin is at a critical juncture. On one hand, the easing of trade tensions and institutional demand are propelling it to historic highs, with optimistic long-term forecasts.
On the other hand, technical signals and massive sell walls warn of a potential short-term correction, possibly to $100,000 or even $93,000. Investors must remain vigilant, monitoring key support and resistance levels, as well as macroeconomic developments. Bitcoin continues to establish itself as a high-risk, high-reward asset, particularly in a geopolitically stable context.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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