Bitcoin Hits $123,000 All-Time High, 14% Gain This Quarter

Bitcoin has recently hit a new all-time high of $123,000, marking a significant milestone in its price trajectory. Over the past week, the market has seen a 1.4% growth, with a notable 3.7% surge in the last 24 hours alone. Analysts are now predicting that Bitcoin will consolidate within the $120,000 to $130,000 range in the short term as market makers balance buy and sell positions.

This quarter, Bitcoin has gained 14%, driven by pro-crypto policies, a strong stock market, and increased demand for exchange-traded funds (ETFs). However, minor pullbacks are anticipated as volatility rises. The cryptocurrency's performance this year has been mixed, with a negative return of -11.7% in Q1 2025, despite a 9.54% gain in January. Q2 saw a strong rebound, with April up 14.2%, May up 11.1%, and June up 2.4%, resulting in a quarterly return of +29.9%.

At the start of this quarter, Bitcoin was priced at $105,653.37 and has since risen by around 14% to $122,146. The rally is supported by a pro-crypto U.S. regime, expectations of lower interest rates, increased government spending, and a strong stock market. Analysts expect Bitcoin to move between $120,000 and $130,000 in the next 15 days, with market makers reportedly buying closer to $120K and selling near $130K, which limits large price swings.

Deribit data shows significant open interest for call options at $115,000 and $120,000 for the July 25 expiry. For later expirations like August 1 and August 29, concentrations appear at $140,000 and $150,000, reinforcing the range-bound activity. Bitcoin’s technical indicators continue to support a bullish trend. The daily RSI stands at 78.17. The 50-day moving average is $107,670.34, the 100-day is at $101,314.77, and the 200-day is $97,133.19. BTC remains well above all key levels, with no signs of divergence.

The Bitcoin Volatility Index (DVOL) is currently at 39.61. Low volatility during a price rally is unusual and suggests a potential increase. DVOL is bottoming, which may lead to short-term pullbacks or sideways action. The U.S. Dollar Index (DXY) was at 96.64 at the start of the month and has risen by 1.22%. This gain, supported by a breakout and energy price risks, could temporarily cap Bitcoin’s upside.

Despite the likelihood of short-term consolidation between $120K and $130K, Bitcoin remains in a strong uptrend. Favorable macro conditions and bullish technical indicators suggest that the broader trend is intact. Investors should exercise caution and conduct thorough research before making any investment decisions, as the cryptocurrency market is highly volatile and prices can fluctuate rapidly.