Bitcoin has crossed the $105,000 mark, igniting speculation about whether the asset could be on track to reach $137,000 in the coming months. A growing cluster of short positions near $104,700, rising institutional demand, and macroeconomic catalysts are setting the stage for what analysts say could be Bitcoin’s next major breakout.

Global M2 Fractal Suggests Rally May Just Be Starting

Analysts have noted that Bitcoin’s price continues to follow the trajectory of the global M2 money supply with a 70-day lag. This fractal relationship, observed consistently through late 2024 and early 2025, has proven to be a reliable predictor of BTC’s moves. The most recent M2 correction now appears to mirror the early stages of previous bull phases–implying that Bitcoin may be entering the next leg of a sustained rally.

If this pattern holds, projections place BTC’s next target range between $110,000 and $125,000–with a potential extension to $137,000 should macro liquidity conditions continue to expand.

Institutional Accumulation Strengthens Bullish Case

Corporate interest is also surging. Japanese firm Metaplanet recently acquired 1,241 BTC (worth $126,7 million), pushing its total holdings to 6,796 BTC at an average entry price of $89,492. The company has openly stated its goal of reaching 10,000 BTC by the end of 2026, using zero-interest bond issuances to fund its strategy–echoing MicroStrategy’s long-term accumulation play.

Separately, blockchain data shows that a whale address scooped up 1,721 BTC–worth over $179 million–in less than 48 hours. This flurry of large-scale buying underscores that institutional conviction in Bitcoin’s long-term trajectory remains intact.

Geopolitical Progress Adds Fuel to Market Optimism

Recent improvements in U.S.-China trade relations have also buoyed financial markets. Officials from both countries confirmed a successful multi-day negotiation in Geneva, with President Donald Trump calling the meeting “constructive.” Bitcoin’s price rose through the $104,000 resistance shortly after the announcement, as investor sentiment turned more risk-on.

ETF Store President Nate Geraci noted that institutional allocators are closely monitoring Bitcoin’s strength, particularly as spot ETF inflows remain robust.

Key Price Levels and Outlook

BTC’s weekly close above $104,500 is seen as a critical technical milestone. MACD indicators are showing the beginnings of a new bullish wave, and a confirmed breakout from the $104,700-$105,000 short cluster could spark a surge toward $110,000-$125,000. Should momentum hold, a retest of the previous all-time high–and potentially a move toward $137,000–will be firmly in play.

As Bitcoin consolidates near $105,000, eyes are locked on the short liquidations overhead. If this pressure releases, it could provide the fuel for the next parabolic advance.

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