Bitcoin Sets New High at $111K — But Is a Price Meltdown Around the Corner?

Bitcoin recorded a major milestone in May 2025 after reaching a new all-time high of $111,980. The surge came just one day after it surpassed its previous peak of $109,588 by climbing to $110,797 on May 21.

This sharp rise followed a slow start to the year, as Bitcoin was trading near $74,500 in early April amid global market tensions. During the next six weeks, it climbed more than 50 percent, one of the most prosperous recoveries in the past months.

At present, Bitcoin is valued at $104,959, having eased slightly from its high in May. Though the market has dropped, participants are still wary because some signs suggest the trend is starting to shift.

While Bitcoin continues to outperform, altcoins like Ethereum and Solana are struggling to keep pace. Both stocks increased significantly after April but are still very far from their maximum values. This performance gap has pushed Bitcoin’s dominance to 65 percent, a level last seen in 2021.

Also Read: Analyst Says XRP Will See 2 or 3 Explosions Soon Based on This

Rising Caution as On-Chain Data Warns of Overheating

According to CryptoQuant analyst Axel, on-chain metrics show signs of overheating. By the end of May, the Net UTXO Supply Ratio had delivered four consecutive sell signals, pointing to increased profit-taking activity.

Additionally, the UTXO Ratio has declined from its local highs, a pattern that often indicates reduced buying demand. As a result, a bigger share of people holding Bitcoin now lie on unrealized gains.

These conditions have caused assets to be sold at a faster rate in the past. Analysts believe the market could be either stabilizing or experiencing a small pullback.

Two situations are being watched closely at present. Bitcoin price action is expected to move still between $95,000 and $105,000 to let gains settle. Because of this, the Net UTXO Supply Ratio will be generally around 0.85 and 0.9.

The second selection indicates that support could be found at $94,700 and $92,000. The 200-day moving average line and buy orders are found at these levels.

Although the market is watching Bitcoin’s sharp rise to $111K, some risks appear. Profit is being taken as demand slows down, which could result in a quick market fall.

Also Read: “The Top 1% Don’t Want You Holding XRP” – Pundit Shares Why They Are Allegedly Suppressing It

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