Chart technicians are particularly excited as Bitcoin hits new record high and breaks through the top trendline of a downtrending channel pattern. The break above the trendline is a bullish technical signal and can mark the start of a new trend upwards.

Supporting this view, the Relative Strength Index (RSI) remains below overbought ground, which means Bitcoin still has further to travel. With momentum on its side and without any meaningful resistance above, Bitcoin can now be said to be going into what traders call "price discovery mode."

While Coinbase volumes are below projections, most believe this to be the case of institutional acquisition via spot Bitcoin ETFs, so not retail acquisition on crypto exchanges. These stealth accumulations are perhaps a building block for future growth.

Technical Target Hints at $146,400

According to the technical analysis measurement principle, the subsequent target for Bitcoin's price increase may be up to $146,400. This is obtained by adding the distance of the previous trend before the downtrend channel to the point of breakout.

Here's the math: The next uptrend added $37,600 of price action. Multiply that by the breakout point of around $108,800 and we arrive at the estimated target of $146,400. If this estimate is accurate, Bitcoin can potentially rise another 32% from here.

This bullish setup, coupled with mounting institutional participation, is propelling investor sentiment firmly now that Bitcoin hits new record high again.

Critical Support Levels for Bitcoin

As bulls are also riding the recent milestone, traders also need to monitor major support levels in case of any retracements. The initial support level to monitor is $107,000, just below the breakout point level and along the 50-day moving average. This is also where former resistance levels during December and January now may provide support.

If $107,000 fails to support, the next significant level is at $100,000. The psychologically significant level completes the lower edge of the prior declining channel and intersects late 2024 trading action. Buyers will try to get back in here if Bitcoin is exposed to a wider market pullback.

Bitcoin hits new record high as Crypto Mood Improves

Bitcoin hits new record high while at the same time the overall sentiment in the crypto markets is becoming increasingly positive. A number of U.S. politicians are busy introducing more transparent regulations so there are fewer barriers for institutions and retail traders to become a part of the digital asset market.

In addition, more and more companies are now beginning to invest some of their firm cash balances in Bitcoin, viewing it as an inflation hedge and an economic uncertainty hedge. Such trends are driving adoption and demand for Bitcoin at a period when supply is capped at 21 million coins.

Long-Term Prospects Remain Positive

While short-term retracements are a certainty in any bull market, the bigger picture is strongly bullish. With strong support in place and institutions strongly in favor of the asset, most experts believe that Bitcoin is well set for sustained gains.

As Bitcoin hits new record high for fifth time in a year, momentum is very much in bulls' favor. If price is above breakdown levels and volume is on the rise, next leg higher towards $146,000 can be sooner than later.

Conclusion

Bitcoin hits new record high—a phrase becoming more popular in 2025. Bitcoin is proving once more why it remains the power to be reckoned with in the crypto world, thanks to solid technicals, institutional demand, and increasing regulatory clarity.

Investors need to remain closely focused on key levels and remain on their toes as the market moves into a potentially explosive new phase.