Bitcoin News Today: Bitcoin Consolidates Below $120K Amid 15% Volume Drop as Technical Indicators Signal Impending Breakout

Bitcoin’s price has remained trapped below the $120,000 resistance level amid growing anticipation of a potential breakout. The cryptocurrency trades at $119,060, consolidating within a narrow range of $118,000–$120,000 on the 1-hour chart, as technical indicators suggest the market is nearing a decisive move. Key patterns such as a symmetrical triangle and an ascending trendline from early May highlight the struggle between bullish and bearish forces. Despite repeated attempts to breach $123,000, the price has failed to sustain momentum, triggering short-term profit-taking and renewed downward pressure [1].

Market dynamics reflect caution among traders. Exchange volume dropped 15% to $90.8 billion, with open interest declining 1.81% to $84.22 billion, signaling a reduction in active positions as participants await clarity [2]. On-chain data shows Bitcoin respecting an ascending trendline since May, while the 4-hour chart indicates compression above the 20 and 50 EMAs, with the 100 EMA offering deeper support near $116,890. Bollinger bands have flattened, suggesting a potential resumption of volatility [3].

Technical indicators point to an imminent shift. The Stochastic RSI has entered overbought territory, hinting at a possible breakout, while the 4-hour Supertrend remains bearish below $120,539. A sustained close above this level could reignite bullish momentum toward $123,000, though the Parabolic SAR’s indecisive positioning and Chaikin Money Flow’s modest positive reading of +0.20 underscore lingering uncertainty [4]. On the 30-minute chart, Bitcoin consolidates above the Ichimoku cloud with flat Tenkan-Sen and Kijun-Sen lines, reinforcing equilibrium [5].

The macroeconomic backdrop adds complexity. A weaker U.S. Dollar Index (DXY) at 97.15—the lowest since mid-July—supports risk-on assets, while Federal Reserve policy remains a wildcard. Speculation about a potential chairperson replacement in late 2024 or early 2025 introduces uncertainty, though current monetary neutrality limits direct impacts on Bitcoin’s inflation-hedge appeal [6].

Analysts remain divided on the immediate outlook. A breakout above $120,000 could validate the bullish trend and trigger a multi-week rally toward $140,000, according to some forecasts, while a breakdown below $115,000 may reignite bearish sentiment [7]. Short-term traders are hedging bets, with options activity suggesting a pivotal clash at $120,000. Meanwhile, long-term bulls highlight structural demand drivers, including institutional adoption, but caution persists due to U.S.-China trade negotiations, which could influence risk appetite [8].

The coming 48 hours will be critical. A decisive move beyond $120,000 or a retest of $115,000 will likely define the short-term trajectory. With volatility compressed and technical indicators aligned for a breakout, the market remains in a high-stakes standoff, awaiting a catalyst to shift balance [9].

Source:

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

[2] [PandoraTech (@impandoratech)][https://www.instagram.com/impandoratech/?hl=en]

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

[4] [Page 3 | Technical Analysis — Trading Ideas on ...][https://www.tradingview.com/ideas/technicalanalysis/page-3/]

[5] [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]

[6] [The Moon Show News and Blogs: Get Daily Crypto Insights][https://themoonshow.com/blog/]

[7] [36Crypto][https://coinmarketcap.com/community/articles/68823d858583a45a07d71365/]

[8] [36Crypto][https://coinmarketcap.com/community/articles/68823d858583a45a07d71365/]

[9] [36Crypto][https://coinmarketcap.com/community/articles/68823d858583a45a07d71365/]