Bitcoin News Today: Bitcoin Surges Past $118K on Strong Technical Breakout

Bitcoin has demonstrated robust upward momentum, breaking out of a bull flag formation and surging toward its all-time high of $123,200. The cryptocurrency is currently trading near $122,000, with analysts suggesting that a breakthrough above this level could soon occur. The price action on the 4-hour chart indicates a strong and confirmed breakout, with the Stochastic RSI showing continued bullish momentum. However, the RSI still needs to rise above its previous high of 85.21 to avoid bearish divergence [1].

The daily RSI also provides encouraging signals, mirroring past bullish trends where price lows and breakouts coincided with RSI behavior. This alignment suggests that the current price action could extend further, potentially entering overbought territory and signaling more upside movement. On the weekly chart, Bitcoin is forming an inverse head and shoulders pattern, with the neckline already broken and confirmed. The target price for this formation is approximately $150,000, with $130,000 likely serving as an intermediate milestone [2].

Bitcoin is currently consolidating above key technical levels, including the 50-day EMA and a Fibonacci retracement level, which have historically served as support during bullish cycles. The cryptocurrency is also resting near a “volume shelf” between $116,000 and $118,000, a price range that could provide further upward impetus [1]. Analysts observe that a sustained close above $118,000 would confirm the continuation of the bullish trend, with further resistance levels expected near $120,500 [1].

The RSI at 63 indicates that Bitcoin remains in a healthy accumulation phase, without entering overbought territory. Meanwhile, the Fear & Greed Index stands at 67, reflecting a generally optimistic sentiment among investors. Institutional adoption continues to play a crucial role, with publicly traded companies now holding over 628,000 BTC, valued at more than $74 billion. Spot Bitcoin ETFs have also seen inflows of nearly $935 million in recent days, highlighting sustained investor confidence [1].

Favorable regulatory developments are also supporting the upward trend. The U.S. has passed legislation allowing 401(k) retirement plans to include crypto assets, potentially unlocking new capital inflows. Additionally, proposed federal bills such as the GENIUS Act and the CLARITY Act aim to provide regulatory clarity, which could redefine Bitcoin’s legal status and reduce uncertainty in the market [1].

Looking ahead, the 2025 Bitcoin halving is expected to reduce the supply of new Bitcoin entering the market, a factor historically associated with price increases. Analyst Donald Dean has noted that the current consolidation could precede a breakout toward the $131,000 level, which aligns with the 1.618 Fibonacci extension [2]. This target represents a roughly 13% increase from current levels, assuming Bitcoin maintains support above the volume shelf.

Bitcoin’s recent performance has also been supported by broader market dynamics. The cryptocurrency has outperformed many other assets, with Ethereum and XRP also posting gains as the market favors risk-on strategies [4]. However, volatility remains a concern, with estimates suggesting short-term price fluctuations between $112,000 and $117,000 [1].

At press time, Bitcoin was trading at approximately $118,384, with a 0.89% gain in the last 24 hours [1]. The ongoing consolidation above key levels, combined with favorable technical and fundamental factors, has led many analysts to believe that Bitcoin is entering the next phase of its bull run. If current momentum continues, the path toward a new all-time high by late August or early September may be on track [1].

Sources:

[1] https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-surges-past-118000-analyst-targets-131k-breakout

[2] https://coingape.com/markets/analyst-predicts-bitcoin-price-surge-historical-bullish-signal-returns-btc-hit-all-time-high/

[3] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-surges-3-75-time-high-halving-impact-gains-momentum-2508/

[4] https://www.mitrade.com/insights/crypto-analysis/others/fxstreet-BTCUSDETHUSDXRPUSD-202508111144