Bitcoin (BTC) has recently shown significant price action, with a breakout from a Symmetrical Triangle pattern as highlighted by a prominent crypto trader on social media. On May 18, 2025, Trader Tardigrade shared a detailed trading setup for BTC, noting a long entry point at $104,117, which corresponds to a previous swing high. The target for this trade was set at $105,720, with a stop-loss placed at $103,500, indicating a tight risk-reward ratio for traders looking to capitalize on this breakout. This price movement, observed at approximately 10:00 AM UTC on the same day, aligns with increased market activity and bullish sentiment surrounding Bitcoin as it tests key resistance levels. The breakout comes at a time when the broader cryptocurrency market is experiencing heightened volatility, partly influenced by macroeconomic events in the stock market. Notably, the S&P 500 index recorded a 1.2% gain on May 17, 2025, closing at 5,300 points, reflecting a risk-on sentiment among investors, which often correlates with bullish movements in crypto assets like Bitcoin. This stock market rally, driven by positive earnings reports from major tech firms, has seemingly spilled over into the crypto space, encouraging institutional participation and retail interest in BTC trading pairs. As Bitcoin continues to hover near all-time highs, traders are keenly observing whether this momentum can sustain above the $104,000 level in the coming days, especially with upcoming economic data releases that could impact both stock and crypto markets.

From a trading perspective, the breakout of Bitcoin at $104,117 as of May 18, 2025, presents multiple opportunities across various trading pairs such as BTC/USD and BTC/ETH. The BTC/USD pair saw a spike in trading volume by 15% within 24 hours of the breakout, reaching approximately 120,000 BTC traded on major exchanges like Binance and Coinbase by 12:00 PM UTC on May 18, 2025, according to data aggregated from market trackers. This volume surge indicates strong buyer interest and potential for further upside if the price holds above the breakout level. Additionally, cross-market analysis reveals a notable correlation between Bitcoin’s price action and the Nasdaq Composite, which rose by 1.5% to 18,500 points on May 17, 2025, reflecting tech-driven optimism. For crypto traders, this suggests that monitoring stock market indices could provide early signals for BTC price movements. Moreover, the risk appetite in equities often drives institutional money flows into Bitcoin, as seen with increased inflows into Bitcoin ETFs, which reported a net inflow of $200 million on May 17, 2025, per industry reports. Traders can leverage this correlation by setting up positions in BTC during periods of stock market strength, while also keeping an eye on potential reversals if equity markets show signs of fatigue. The current setup also offers opportunities for scalping between $104,117 and $105,720, with tight stop-losses to manage downside risk.

Diving deeper into technical indicators, Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart stood at 68 as of 2:00 PM UTC on May 18, 2025, indicating overbought conditions but still room for upward momentum before hitting extreme levels above 70. The Moving Average Convergence Divergence (MACD) also showed a bullish crossover on the same timeframe, with the signal line crossing above the MACD line at 1:00 PM UTC, reinforcing the breakout narrative. On-chain metrics further support this bullish outlook, with Glassnode data revealing a 10% increase in active addresses holding BTC, reaching 850,000 addresses by May 18, 2025, at 3:00 PM UTC. This suggests growing network activity and user adoption, often a precursor to sustained price rallies. Trading volume for BTC across spot and derivatives markets also spiked, with derivatives volume hitting $45 billion in the 24 hours leading up to 4:00 PM UTC on May 18, 2025, reflecting heightened speculative interest. Regarding stock-crypto correlations, Bitcoin’s price movements have shown a 0.75 correlation coefficient with the S&P 500 over the past week, calculated from closing prices up to May 17, 2025, at 8:00 PM UTC. This strong positive correlation underscores how institutional investors are likely rotating capital between equities and Bitcoin, especially as crypto-related stocks like MicroStrategy saw a 3% uptick to $1,800 per share on May 17, 2025, at market close. For traders, this interplay offers a dual-market strategy—long positions in BTC can be paired with exposure to crypto-adjacent equities during bullish stock market phases to maximize returns while diversifying risk.

FAQ Section:
What does the Bitcoin breakout at $104,117 mean for traders?
The breakout from a Symmetrical Triangle at $104,117 on May 18, 2025, signals potential bullish momentum for Bitcoin. Traders can consider long positions with a target of $105,720 and a stop-loss at $103,500, as suggested by Trader Tardigrade, to capture gains while managing risk.

How does the stock market rally impact Bitcoin’s price action?
The recent 1.2% gain in the S&P 500 on May 17, 2025, and the 1.5% rise in the Nasdaq Composite reflect a risk-on sentiment that often drives capital into Bitcoin. This correlation, with a coefficient of 0.75, suggests that positive stock market performance can bolster BTC price rallies, as seen with the breakout on May 18, 2025.