Bitcoin's value stabilizes around $117,000, as bullish investors pursue a surge past this level
Bitcoin, the world's largest cryptocurrency, is currently trading around $116,500 with moderate volume, following a period of high trading volumes that coincided with price surges in May and June. However, during the subsequent consolidation period, trading volume has declined, signalling market indecision.
Two key levels are being closely watched by traders: the support level at $112,000 and the resistance level at $117,687. A clean break above the resistance is considered crucial to avoid pitfalls and signal renewed confidence among Bitcoin investors. Conversely, failing to overcome the resistance could trigger a retest of the $112,000 support.
Traders remain cautious, aware that macroeconomic data can quickly shift market momentum. In particular, the upcoming US Consumer Price Index data, set for release next week, is being closely eyed. A hotter-than-expected reading might push interest rates higher and weigh on risky assets like cryptocurrencies.
The recent pullback from Bitcoin's record high has seen the digital asset consolidate within a range of approximately $113,400-$115,600 for support and $122,000 to $124,500 for resistance. The key resistance level of $122,000 is also a Fibonacci extension level, adding technical significance.
The US inflation data's impact on Bitcoin's ability to break out of this consolidation range could be significant. Higher-than-expected inflation figures recently caused a 4% price decline from the $124K peak, reflecting Bitcoin's sensitivity to macroeconomic indicators that impact Federal Reserve policy and interest rate expectations.
If the inflation data indicates easing inflation, it could trigger a breakout towards $130,000-$140,000. Conversely, disappointing data might prompt retests of lower support zones near $113,000-$115,000.
Overall, Bitcoin's immediate trajectory appears contingent on the inflation outcomes that influence market risk appetite and Fed policy outlook. Institutional investment continues to provide price support, but volatility around inflation releases is expected to remain high, making these levels pivotal for a sustained breakout or further consolidation.
Analysts also note improving investor sentiment and bullish technical setups, suggesting potential for upward momentum if macroeconomic conditions align. The next few days are critical in determining whether Bitcoin breaks out of its consolidation or retreats. If Bitcoin breaks above the $117,687 resistance, it could target the $120,000 mark.
In addition to Bitcoin, both Ethereum and other altcoins face resistance near $4,100 and $120,000 respectively. Breaking these levels could ignite strong rallies across the market.
[1] CoinMarketCap. (2025). Bitcoin Price. Retrieved from https://coinmarketcap.com/currencies/bitcoin/ [2] CoinDesk. (2025). Bitcoin Falls Below $124,000 as Inflation Fears Mount. Retrieved from https://www.coindesk.com/markets/2025/08/01/bitcoin-falls-below-124000-as-inflation-fears-mount/ [3] CNBC. (2025). Bitcoin's Price Could Surge to $150,000, Says Analyst Mike McGlone. Retrieved from https://www.cnbc.com/2025/07/28/bitcoin-price-could-surge-to-150000-says-analyst-mike-mcglone.html [4] Bloomberg. (2025). Bitcoin Drops After U.S. Inflation Data Shows Higher-Than-Expected Reading. Retrieved from https://www.bloomberg.com/news/articles/2025-08-12/bitcoin-drops-after-u-s-inflation-data-shows-higher-than-expected-reading
- The BSE (Bombay Stock Exchange) has been observing the fluctuating trading of Bitcoin on the National Stock Exchange of India (NSE), given its significant impact on the global finance market.
- In the world of finance, technology plays a crucial role in Bitcoin and Ethereum investments, as it enables instant transactions and secure storage, contributing to their appeal as digital assets.
- As the US Federal Reserve monitors inflation data, interest rates can potentially affect the value of both Bitcoin and Ethereum, since higher interest rates might reduce investor appetite for risky assets like cryptocurrencies.
- While investing in cryptocurrencies such as Bitcoin and Ethereum, it's essential to stay updated on macroeconomic data, such as inflation rates, to make informed decisions and anticipate market movements.
