Bitcoin News Today: Bitcoin's $120K Surge Follows $116K Dip, $123K Breakout Could Trigger $135K Rally

Bitcoin’s recent price action has drawn intense market attention as it navigated critical levels, with the cryptocurrency initially dipping below $116,000 on July 22 before surging past $120,000 in subsequent sessions [2]. This volatility reignited debates about potential resistance and support thresholds, including the $123,218 level, which, if breached, could signal a renewed uptrend toward $135,729 or even $150,000 [1]. Technical analyses indicate a consolidation phase between $115,961 and $120,000, with further direction dependent on whether the price stabilizes above $115,500 or faces a pullback to $110,530 [3].

The ETHBTC pair also became a focal point, with a break above the 0.033BTC threshold seen as a potential catalyst for an altcoin rally [1]. However, the broader market experienced turbulence, marked by a 123% spike in long-position liquidations totaling over $647 million on exchanges after the July 22 dip [5]. Ethereum and altcoins like Dogecoin and PAAL AI faced significant losses, attributed to profit-taking following a 16% rally fueled by ETF optimism and retail investor participation [5]. Technical indicators such as the 21-day RSI hitting 74.25 (overbought territory) and bearish MACD divergence underscored the fragility of the current trend [5].

Macro-level factors, including former U.S. President Donald Trump’s economic rhetoric, added complexity to the market narrative. Trump’s recent visit to the Federal Reserve and his emphasis on trade deals—particularly with the UK and EU—signaled a push for lower interest rates, aligning with his broader advocacy for a strong dollar despite concerns about its impact on exports [1]. His comments on the likelihood of resolving tariff agreements with China and the EU by August further stoked speculation about policy-driven market shifts [1].

Long-term fundamentals remain mixed. Over 210,000 BTC has been sold by long-term holders since early July, yet demand has outpaced supply, reflecting divergent investor behavior [6]. The Altcoin Season Index, currently at 40/100, suggests reduced risk appetite, with capital temporarily shifting to Bitcoin as a haven amid altcoin volatility [5]. Meanwhile, stablecoin inflows surged by $11 billion in July, amplifying Bitcoin’s dominance during uncertain periods [5].

Looking ahead, the market’s trajectory will hinge on key macroeconomic data, including the U.S. PCE inflation report, which could influence interest rate expectations [5]. Analysts from Mitrade have speculated a long-term price target of $1 million for Bitcoin, though this remains a speculative forecast contingent on structural market shifts [7]. Immediate liquidity and leverage dynamics also remain critical: a sustained rally above $115,000 could attract fresh buyers, while a drop below $113,000 risks triggering panic selling due to high leverage [1].

In summary, Bitcoin’s recent volatility reflects a tug-of-war between bullish momentum and profit-taking pressures. Critical levels like $123,218 and $115,500 will shape near-term outcomes, while macroeconomic developments and liquidity conditions will dictate longer-term trends. Investors are advised to monitor technical indicators and policy updates closely, as the interplay between short-term turbulence and structural demand will likely determine Bitcoin’s next move.

Sources: [1] [Bitcoin News Today: BTC Consolidation Near $115K–$120K Signals $135K Surge](https://www.ainvest.com/news/bitcoin-news-today-btc-consolidation-115k-120k-signals-135k-surge-2507/) [2] [Bitcoin Could Drop to $70K This Year, Crypto Executive Warns](https://news.bitcoin.com/bitcoin-could-drop-to-70k-this-year-crypto-executive-warns/) [3] [Bitcoin News Today: Bitcoin Surges Past $120,000, Eyes $136,000 Target](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-eyes-123-218-breakout-potential-13-gain-135-729-2507/) [5] [Why the Crypto Market is Down Today: BTC, ETH, XRP](https://cryptonews.net/news/analytics/31316615/) [6] [Bitcoin Demand Outstrips Supply Ahead of August Lull](https://www.coindesk.com/daybook-us/2025/07/24/bitcoin-demand-outstrips-supply-ahead-of-august-lull-crypto-daybook-americas) [7] [Bold Forecast: Bitcoin Headed For $1 Million In The Long-Term](https://www.mitrade.com/insights/news/live-news/article-3-985374-20250725)