Bitcoin Surges Past $104,000 USD in the Morning: Is a New Stablecoin Regulation-Driven Rally in the Works?

Bitcoin (BTC) continued its bullish streak during the early hours of Sunday, May 11, 2025, surpassing the $104,000 USD barrier. This movement occurs in a context of optimism in the crypto market, partly fueled by news about possible clearer regulation for stablecoins in

United States, which could attract greater institutional participation.

During the first few hours, Bitcoin reached a high of $104,100 USD and a low of $102,727 USD, registering an increase of 0.50%. The global cryptocurrency market capitalization remained robust at $2.05 trillion USD. However, one data point worth noting is the significant decrease in daily trading volume, which fell by 44.37% to $38.49 billion USD, suggesting a consolidation phase or a rally with lower conviction following the recent volatility. Despite this, BTC retains its top position in the cryptocurrency ranking, dominating sentiment and momentum.

of the market.

A closer technical analysis of the Bitcoin chart reveals several interesting signals:

• Bollinger Bands begin to narrow, which usually heralds an imminent breakout. If the current momentum holds, this breakout

  would probably be on the up.

• The Relative Strength Index (RSI) is at neutral to slightly bullish levels (around 58), indicating that there is room for a move

  continuous upward trend before reaching overbought territory.

• The MACD indicator recently crossed higher, reinforcing the current upward trend.
• The ATR-based Supertrend continues to show a buy signal since the beginning of the week, confirming that support remains above

  the $102,000 USD.

• The Choppiness Index remains below 40, suggesting that trending market conditions are strengthening.

These indicators, along with today's price action, suggest that Bitcoin is in a "grind higher" phase (gradual rise with low volume),

possibly preparing for an expansion of volatility.

One of the news items that is generating expectations in the market is the signal from the United States Treasury regarding its intention to promote clearer regulation for stablecoins. This movement is considered bullish for Bitcoin and the crypto market in general, since greater regulatory clarity could reduce systemic risks, encourage innovation and, fundamentally, facilitate a

greater institutional participation in the space.

In parallel, a drop in Ethereum gas fees to late 2023 levels has been observed, due to a decrease in its network activity. This change is bringing the spotlight back to Bitcoin as the "safe haven" cryptoasset.

"safe" amid the uncertain dynamics of some altcoins.

"Greater regulatory clarity could be the key to greater institutional participation in the crypto space, which has historically been a catalyst for Bitcoin." – Cryptocurrency Analyst for La Verdad

News.

Liquidation Heatmap analysis reveals critical areas to monitor:

• 24 hours: There is a strong concentration of leveraged long positions around $102,000 USD, suggesting a robust defense by the bulls in that area. Conversely, considerable short interest is building around $105,000 USD, which could trigger a liquidation.

  explosive short squeeze if BTC breaks through this resistance.

• 30-day: A massive $16.35 billion in long positions are at risk of being liquidated if Bitcoin drops to $88,813, potentially triggering a cascade of selling. On the flip side, if BTC rallies to $115,138, $1.95 billion in short positions are vulnerable, offering a

  significant fuel for a parabolic upward movement.

Currently, the Altseason Index sits at 33, clearly indicating that it is still Bitcoin season. Altcoins have yet to take off significantly, and BTC dominance remains high. This reaffirms that capital is still primarily flowing into Bitcoin rather than rotating into altcoins, a typical behavior in the early stages of a bull cycle.

the cryptocurrency market.

In conclusion, Bitcoin continues to show consistent strength, driven by a combination of positive regulatory sentiment, strong ETF inflows, and a technical setup that favors a gradual upside. With leverage building on both sides, a break above $105,000 USD could trigger a short squeeze, while

$102,000 USD remains the key line of defense for the bulls.

Are you a Bitcoin investor or thinking about becoming one? Share your market views and strategies in the comments.

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