Bitcoin News Today: Bitcoin Consolidates Near $120,000 Amid 15% Volume Drop Awaits Breakout Signal

Bitcoin remains in a critical consolidation phase near the $120,000 threshold, with technical indicators and market dynamics signaling heightened anticipation for a decisive breakout or pullback. The cryptocurrency trades at $119,060, confined within a narrow range between $118,000 and $120,000 on the 1-hour chart, as traders await clarity on its next directional move [1]. The price has repeatedly tested resistance at $123,000 without sustaining a rally, leading to short-term profit-taking and reinforcing the $120,000 level as a focal point of market tension [1].

Technical analysis highlights a symmetrical triangle pattern forming on the 1-hour chart, with Bitcoin squeezed between ascending support and descending resistance. This structure, coupled with flattening Bollinger Bands and a Stochastic RSI entering overbought territory, suggests imminent volatility. A break above $120,000 could target the all-time high of $123,218, while a drop below $118,000 may trigger a retest of key support near $112,000 [1]. The 4-hour Supertrend remains bearish below $120,539, but sustained buying pressure above the 20 and 50 EMAs hints at potential bullish momentum [1].

Market activity reflects caution, with on-chain data showing a 15% decline in trading volume to $90.8 billion and open interest dropping 1.81% to $84.22 billion. Traders are closing positions as they await confirmation of a breakout, according to Coinglass data [1]. The Parabolic SAR’s indecisive positioning and a muted Chaikin Money Flow of +0.20 further underscore the market’s equilibrium [1]. Analysts note that Bitcoin’s ability to hold above $115,000 despite retail selling pressure demonstrates underlying resilience, though institutional ETF outflows remain a watchful factor [2].

Broader macroeconomic conditions, such as the US Dollar Index falling to near 97.00, have eased pressure on risk assets, indirectly supporting crypto markets [3]. However, the absence of major regulatory developments in the U.S. keeps technical levels as the primary driver of short-term sentiment [2]. While some analysts argue that Bitcoin’s consolidation could lead to a test of $140,000 via Fibonacci extensions, others caution that high volatility and reliance on short-term traders may result in erratic price swings [2].

The broader crypto market has mirrored Bitcoin’s stagnation, with altcoins like Ethereum and XRP gaining traction as traders shift focus. Ethereum’s 20% surge over the past month highlights altcoin outperformance, though most analysts agree Bitcoin’s trajectory remains pivotal for risk appetite [1]. As of July 23, the asset stabilized near $118,000, with market participants emphasizing that each movement above or below $120,000 will be scrutinized for signals of a larger trend [2].

Source:

[1] [Crypto Today: Bitcoin Consolidates, Ethereum and XRP ...](https://www.mitrade.com/insights/news/live-news/article-3-977525-20250722)

[2] [Las noticias de hoy sobre criptomonedas](https://www.binance.com/es-AR/square/news/all)

[3] [US Dollar Index Extends Downside to Near 97.00 as Traders ...](https://www.fxstreet.com/news/us-dollar-index-extends-downside-to-near-9700-as-traders-assess-new-trade-deal-202507240223)

[4] [Bitcoin Price Forecast: BTC Rejected from $120,000 as Momentum Cools ...](https://themoonshow.com/blog/)