Bitcoin is trading above $105,400 as of May 21 after gaining nearly 3 percent in the last 24 hours. The surge has pushed the asset into a significant resistance zone at $106,600.
According to on-chain data from Glassnode, this level hosts a major supply cluster of 31,000 BTC acquired in December. These coins have remained largely untouched, forming a strong technical and psychological barrier.
Holders in this region have neither sold nor averaged down during recent volatility. This behavior reinforces the area’s importance as a critical test for bullish momentum.
At the same time, larger and smaller wallets are building significant amounts. Those with less than 1 BTC have started buying more than they are selling.
Accounts with 100 to 1,000 BTC earned an accumulation score of 0.9, whereas those holding 1,000 to 10,000 BTC scored 0.85. The steady growth of these levels proves that there is trust from players and owners worth the most.
Only the group with 1 to 10 BTC is net selling, suggesting that people who hold less Bitcoin feel differently. Still, accumulation by large investors is the main force driving the market.
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Technical Signals Support Bullish Momentum Toward $125K
The Relative Strength Index stands near 71, suggesting strong momentum even as it enters overbought territory. Continued strength at this level often signals the potential for further gains.
MACD analysis confirms a bullish crossover, with upward lines and no visible bearish divergence. Momentum indicators continue to support the upward trend.
Source: Tradingview
If Bitcoin moves above $109,000, according to John Deaton, it could quickly shoot up to $125,000. Powell said that if $110,000 is achieved, the target could be moved to $125,000 more quickly.
Bitcoin has broken key Fibonacci levels between the $88,834 high and $70,526 low. After breaking above the $74,441 level, earlier resistance zones are no longer challenging for XRP.
Bitcoin is trying to break through the $106,600 barrier as more buying and positive technical signals increase. If breakout works, it could lead to a sharp rise towards the $120,000 to $125,000 area, with market eyes on whether the bulls can surpass this critical barrier.
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