Bitcoin News Today: Bitcoin rebounds above $120,000 after 123% surge in liquidations hits $647M

Bitcoin’s recent price movements have underscored a complex interplay of market resilience and volatility, as the cryptocurrency navigated critical support and resistance levels amid broader economic signals. After a sharp drop below $116,200 on July 22, Bitcoin rebounded to surpass the $120,000 psychological threshold, signaling a potential resumption of its upward trend. However, the asset remains in a consolidation phase between $115,961 and $120,000, with technical indicators suggesting either a breakout toward $135,729 or a pullback to $110,530[2]. The critical $123,218 level has emerged as a pivotal resistance point, with analysts noting that a successful breakout could reignite the uptrend toward $150,000[1].

Market dynamics have been volatile, marked by a 123% surge in BTC liquidations after the drop below $116,000 support. Over $647 million in positions were liquidated within 24 hours, with Ethereum (ETH) and altcoins like Dogecoin and PAAL AI suffering significant losses[3]. The Altcoin Season Index, a gauge of risk appetite, fell to 40/100, reflecting a shift toward safer assets. Meanwhile, Bitcoin dominance rose to 60.8%, as investors rotated into the leading cryptocurrency amid regulatory uncertainties and weak order books for speculative tokens[3].

Long-term holder (LTH) activity has also underscored supply dynamics. Over 210,000 BTC was sold by LTHs in July, with another 250,000 BTC expected to enter the market as the month progresses[4]. This outflow contrasts with recent treasury buying, which has offset some of the selling pressure[5]. Technical indicators further complicate the outlook: the 21-day RSI hit overbought levels (74.25), while MACD divergence suggests potential trend exhaustion[3].

Meanwhile, former U.S. President Donald Trump’s economic rhetoric has added layers of uncertainty. His recent visit to the Federal Reserve highlighted his push for lower interest rates and a trade deal with the U.K., though he acknowledged a 50% likelihood of finalizing an EU agreement. Trump’s advocacy for a strong dollar, despite its potential impact on exports, persists as a recurring theme in his economic strategy[2]. Analysts suggest these mixed signals could influence investor sentiment, particularly as Bitcoin’s price nears a historical tight range[3].

The ETHBTC pair has emerged as a focal point for altcoin optimism. A successful breach of the 0.033BTC threshold could trigger a rally in altcoins, though this remains contingent on Bitcoin’s ability to defend the $115,000 support level[2]. Market observers also await key U.S. macroeconomic data, including PCE inflation figures, which could dictate the next phase of Bitcoin’s trajectory[3].

Analysts remain divided on the near-term outlook. While some highlight Bitcoin’s resilience near $115,961, others warn of a potential decline to $70,000 amid macroeconomic concerns[1]. A bold forecast from Mitrade even suggests a long-term target of $1 million for Bitcoin, though this remains speculative[6]. The Fear & Greed Index, currently at 66, reflects cautiously optimistic sentiment, but leveraged positions and profit-taking could exacerbate short-term volatility[3].

With Bitcoin’s price near a historical tight range and critical resistance levels in play, investors face a delicate balance between seizing breakout opportunities and mitigating liquidation risks. The market’s next moves may hinge on Bitcoin’s ability to defend key support levels ahead of broader macroeconomic trends[3].

Sources:

[1] [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/)

[2] [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/)

[3] [Why the Crypto Market is Down Today: BTC, ETH, XRP](https://cryptonews.net/news/analytics/31316615/)

[4] [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)

[5] [ChatGPT's BTC Analysis Flags $120K Test, Altseason Risk](https://cryptonews.com/news/chatgpts-42-indicator-btc-analysis-flags-critical-120k-test-amid-altseason-uncertainty-and-treasury-surge/)

[6] [Bold Forecast: Bitcoin Headed For $1 Million In The Long-](https://www.mitrade.com/insights/news/live-news/article-3-985374-20250725)