Bitcoin News Today: Bitcoin Stabilizes Amid U.S. Trade Deals as S&P 500 Rallies 21% and Volatility Hits 70% of Historical Norms

Bitcoin (BTC) has maintained stability amid significant U.S. trade agreements, with analysts observing technical indicators for signs of a potential breakout. Recent trade deals with Japan and the European Union have reduced economic uncertainty, fostering renewed confidence in the U.S. stock market and attracting institutional investors. The S&P 500 Index has reentered an ascending channel following a 21% rebound since March 2025, signaling optimism about future growth [1]. This environment has bolstered Bitcoin’s appeal as a macroeconomic hedge, with its price consolidating near the upper trendline of a bull flag pattern on the 4-hour chart [1].

Technical analysis highlights critical resistance and support levels for Bitcoin. The asset recently tested $120,000—a level aligned with the 0.618 Fibonacci extension and the bull flag’s upper boundary—but failed to break through, as evidenced by the Stochastic RSI’s downward turn [1]. A correction to $118,000 or $112,000 is possible if bearish pressure intensifies, though the Stochastic RSI on daily and weekly charts remains bullish, suggesting a potential rebound. The S&P 500’s reentry into its ascending channel has reinforced market stability, with the RSI indicating room for further gains before overbought conditions emerge [1].

Broader macroeconomic factors, including the U.S.-EU trade pact, have reduced Bitcoin’s volatility to 70% of historical norms, nearing record lows last observed in late 2023 [2]. This stability has drawn comparisons to Ray Dalio’s recommendation to reallocate 15% of gold investments to Bitcoin, citing its role as a macroeconomic hedge [2]. Meanwhile, Michael Saylor’s firm has signaled plans to increase Bitcoin reserves, reinforcing long-term bullish sentiment [3].

Analyst forecasts for Bitcoin’s trajectory remain mixed. Some predict a near-term target of $130,000 if the $119,000 resistance holds [4], while others project a potential rise to $160,000, contingent on overcoming current technical hurdles [5]. The Federal Reserve’s upcoming decisions and broader market volatility will likely influence Bitcoin’s performance, particularly as traders await clarity on interest rate trends [6].

The market’s cautious optimism contrasts with altcoin underperformance, as Bitcoin maintains a stable position amid macroeconomic developments [6]. While the bull flag pattern suggests a consolidation phase, the eventual breakout—upward or downward—will depend on institutional demand and geopolitical trade dynamics.

Source:

[1] [Bitcoin (BTC) Holds Steady Amid Major US Trade Deals](https://cryptodaily.co.uk/2025/07/bitcoin-btc-holds-steady-amid-major-us-trade-deals-whats-next)

[2] [Bitcoin Volatility Near Record Low 70% as U.S.-EU Trade Deal Bolsters 1T Market Cap](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-volatility-record-70-eu-trade-deal-bolsters-1t-market-cap-2507/)

[3] [Michael Saylor Signals Strategy's Next Big Bitcoin Accumulation Move](https://coincentral.com/michael-saylor-signals-strategys-next-big-bitcoin-accumulation-move/)

[4] [Bitcoin Consolidates Above $119K, Analysts Eye $130K Target](https://www.fxleaders.com/news/2025/07/28/bitcoin-consolidates-above-119k-analysts-eye-130k-target-amid-heightened-volatility/)

[5] [Bitcoin (BTC) Eyes $160K, but This $0.035 Altcoin Might](https://www.mitrade.com/insights/news/live-news/article-3-989682-20250727)

[6] [Cryptocurrency Live News & Updates: Strong Bitcoin Amid Fed Decision](https://m.economictimes.com/crypto-news-today-live-28-jul-2025/liveblog/122939448.cms)