Bitcoin (BTC) has surged to a new all-time high of $123,350, supported by easing inflation data and expectations of continued short liquidations. Market analysts now see $125,000 as the key breakout level that could propel prices into uncharted territory.
The rally gained momentum after the U.S. Consumer Price Index (CPI) for July showed inflation was unchanged month-on-month and up 2.7% year-on-year. This reading reinforced market expectations that the Federal Reserve could adopt a more accommodative stance in the coming months, a scenario historically favorable for risk assets like Bitcoin.
On the daily chart, BTC broke through the $116,000 resistance zone with strong buying pressure, quickly advancing to the $123,000–$123,500 range, a fresh record high. The move has also been accompanied by higher trading volumes, signaling strong conviction among buyers.
Bitcoin is now testing the upper boundary of its $123,000–$125,000 supply zone. A confirmed breakout above $125,000 could trigger aggressive upside momentum, with traders targeting $130,000 as the next round number milestone.
“The structure is incredibly bullish right now. With open interest rising and funding rates holding steady, there’s room for a clean breakout if $125K is cleared,”According to BITX market strategist.
Support has now shifted to the $116,000–$117,000 region, with deeper downside protection near $106,000, a former resistance-turned-support level.
Liquidations Could Amplify Price Action
Analysts note that Bitcoin’s current positioning above its prior highs could trap late short sellers, potentially triggering a wave of liquidations. “If BTC sustains above $123K for a few daily closes, the squeeze could be sharp and fast, pushing price toward $130K faster than expected,” another analyst observed.
With inflation pressures easing, macro sentiment improving, and technical momentum firmly in favor of bulls, Bitcoin is in a strong position to attempt a breakout above $125,000. A decisive move beyond this level could open the path toward a new phase of price discovery for the world’s largest cryptocurrency.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.