Bitcoin News Today: Bitcoin Retests $115K–$116K Neckline as Bullish Pattern Targets $118,800 Ahead of FOMC

Bitcoin’s recent price action has drawn attention to the $115,000–$116,000 neckline, a critical support zone following a breakout above $113,000 in early July 2025. The cryptocurrency is consolidating above this level, reinforcing a bullish structure confirmed by an inverse Head & Shoulders pattern developed over six months [1]. This technical formation, characterized by a breakout above former resistance levels, typically signals a continuation of upward momentum, with Bitcoin maintaining higher highs and lows post-breakout. Traders are interpreting the retest as a validation of sustained buyer strength, with bulls aiming to push the price beyond $118,800 to trigger a potential rally toward $125,000 in the coming weeks [2].

Market data underscores heightened speculative activity, with open interest surging to an all-time high of $44.5 billion ahead of the Federal Reserve’s FOMC meeting on July 29 [3]. This metric reflects increased leverage in derivative markets, amplifying potential volatility as traders position for directional bets. Analysts note that the current cycle differs from past corrections due to institutional inflows via ETFs, adding complexity to price dynamics. While Bitcoin’s 24-hour trading volume dipped 26.54% to $69.31 billion, its market cap remained stable at $2.33 trillion, with the price hovering near $117,595 [4].

A key focus for bulls is the $118,800 threshold, which, if breached, could solidify a wedge pattern breakout and pave the way for a $125,000 target. The success of this move hinges on maintaining control of the $115K–$116K support zone, as failure to hold this level could invite corrective pressure. Meanwhile, the FOMC meeting looms as a pivotal event, with expectations of potential rate cuts fueling risk-on sentiment. A dovish outcome may accelerate inflows into crypto assets, while a hawkish stance could delay bullish momentum [5].

The interplay between technical indicators and macroeconomic factors highlights Bitcoin’s sensitivity to both market structure and central bank policy. Open interest reaching $44.5 billion suggests a crowded trade, with sharp price swings likely if leveraged positions trigger cascading liquidations. Traders are advised to monitor the FOMC decision closely, as it may dictate short-term volatility and influence risk appetite across asset classes [6].

Bitcoin’s retest of the $115K–$116K neckline aligns with a broader narrative of institutional adoption and macro-driven speculation. While the $125K target remains aspirational, the path to this level depends on maintaining control of key support and resistance zones. Market participants are balancing optimism over the bullish setup with caution around elevated leverage, recognizing the dual potential for gains and abrupt reversals in a highly leveraged environment [7].

Sources:

[1] [Bitcoin Retests $115K Neckline Amid Bullish Momentum Ahead of Potential $118,800 Breakout July 26, 2025] https://en.coinotag.com/bitcoin-retests-115k-neckline-amid-bullish-momentum-ahead-of-potential-118800-breakout/

[2] [Bitcoin Retests $115K Neckline Amid Bullish Momentum Ahead of Potential $118,800 Breakout July 26, 2025] https://en.coinotag.com/bitcoin-retests-115k-neckline-amid-bullish-momentum-ahead-of-potential-118800-breakout/

[3] [Bitcoin Retests $115K Neckline Amid Bullish Momentum Ahead of Potential $118,800 Breakout July 26, 2025] https://en.coinotag.com/bitcoin-retests-115k-neckline-amid-bullish-momentum-ahead-of-potential-118800-breakout/

[4] [Bitcoin Retests $115K Neckline Amid Bullish Momentum Ahead of Potential $118,800 Breakout July 26, 2025] https://en.coinotag.com/bitcoin-retests-115k-neckline-amid-bullish-momentum-ahead-of-potential-118800-breakout/

[5] [Bitcoin Retests $115K Neckline Amid Bullish Momentum Ahead of Potential $118,800 Breakout July 26, 2025] https://en.coinotag.com/bitcoin-retests-115k-neckline-amid-bullish-momentum-ahead-of-potential-118800-breakout/

[6] [Bitcoin Retests $115K Neckline Amid Bullish Momentum Ahead of Potential $118,800 Breakout July 26, 2025] https://en.coinotag.com/bitcoin-retests-115k-neckline-amid-bullish-momentum-ahead-of-potential-118800-breakout/

[7] [Bitcoin Retests $115K Neckline Amid Bullish Momentum Ahead of Potential $118,800 Breakout July 26, 2025] https://en.coinotag.com/bitcoin-retests-115k-neckline-amid-bullish-momentum-ahead-of-potential-118800-breakout/