Bitcoin News Today: Bitcoin nears $123 000 driven by technical strength and Fed rate-cut expectations

Bitcoin continues to make headlines as it approaches another potential milestone, with analysts and investors closely monitoring its price action. On August 13, 2025, Bitcoin surged close to the $123,000 level, representing a major psychological and technical threshold amid a sustained uptrend [1]. The cryptocurrency has been steadily climbing since mid-April within an ascending channel, supported by a positive crossover between the 100-day and 200-day moving averages [1]. On the 4-hour chart, Bitcoin has shifted from consolidation to a clear uptrend, moving along an upward trendline while the Relative Strength Index (RSI) remains above 50, reinforcing the bullish bias [1].

A notable divergence between price and open interest has also emerged, suggesting that the recent rally has been driven by spot demand and short-covering rather than leveraged speculative positioning [1]. As open interest declines with rising prices, the market faces a scenario where fewer participants may step in to support key levels if a reversal occurs. However, Bitcoin’s ability to remain above the 21-day simple moving average indicates renewed strength, with $123,120 as the next key resistance target [2]. Should it fail to hold, a retrace toward $114,000 could follow [2].

The broader macroeconomic environment is also supporting a bullish outlook. Analysts are increasingly pointing to the potential for the U.S. Federal Reserve to cut interest rates, as evidenced by the stabilization in the Consumer Price Index (CPI) and the 93.9% probability of a rate cut by September, according to the CME FedWatch tool [3]. This has encouraged a shift in capital toward risk-on assets, with Bitcoin benefiting as it surged above $120,000 after a brief pullback to $118,931 [3].

Institutional participation and regulatory clarity are further reinforcing the case for continued gains. The potential approval and listing of a Bitcoin ETF, including the first Trump-branded Bitcoin ETF, could serve as a catalyst for renewed volatility and investor confidence [4]. Additionally, capital inflows into Ethereum ETFs have driven ETH to record highs of $4,700, signaling a broader market sentiment that favors crypto assets as a class [5].

Looking ahead, analysts have identified $126,000 as a key milestone for Bitcoin [1]. Should this level be breached, it would not only represent a new all-time high but also trigger a wave of speculative buying and further institutional accumulation. Meanwhile, the broader crypto market remains in a bullish phase, with major altcoins such as XRP, ADA, and ETH showing strong on-chain flows and favorable technical setups [6]. However, risks persist if macroeconomic indicators shift or regulatory uncertainty resurfaces.

Bitcoin’s movement toward $126,000 is not just a price development—it is a signal of broader market confidence in the asset class. Whether institutional demand, macroeconomic tailwinds, or regulatory clarity will be the key drivers in the coming weeks remains to be seen, but the convergence of bullish factors suggests that this next threshold could prove to be a defining moment for the crypto market.

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Source: [1] SignalPlus (https://t.signalplus.com/crypto-news/all)