Bitcoin Sets New Record High: What’s Next?
Bitcoin has surged to a fresh all-time high above $124,000, driven by rising expectations of a Federal Reserve rate cut in September and upbeat U.S. inflation data for July.
Quick recap:
- BTC reached $124,000 as the odds of a Fed rate cut climbed.
- Spot Bitcoin ETFs saw over $1 billion in net inflows in the past five sessions.
- A clear ascending channel pattern has formed on the 4-hour chart.
According to crypto.news, BTC touched $124,128 during Friday’s Asian trading session before easing to $123,197 at press time. Despite the pullback, the cryptocurrency remains up 32% year-to-date and over 62% from this year’s low.
The rally came just after the release of the July Consumer Price Index report in the U.S. Annual inflation held steady at 2.7%, below the 2.8% forecast, while monthly price growth slowed to 0.2% from June’s 0.3%.
Data from CME FedWatch, a popular gauge of market expectations for Fed policy changes, showed the probability of a September rate cut jumping to 95.8% after the CPI report. Lower interest rates typically reduce borrowing costs and boost liquidity, prompting investors to seek higher-yielding, risk-on assets like cryptocurrencies.
ETF flows have also played a key role in the rally. Figures from SoSoValue show that 12 spot Bitcoin ETFs drew more than $1 billion in net inflows over the last five trading days, while spot Ether ETFs pulled in roughly the same amount in a single day earlier this week — fueling bullish sentiment across the crypto market.
According to CoinGlass, BTC’s breakout to record highs coincided with a wave of short liquidations in the $124,000–$126,000 range, forcing bearish traders to close positions and further accelerating upward momentum. However, the data also reveal a cluster of long liquidation levels near $120,000–$121,000. If the price retraces into this zone, it could trigger a sharper sell-off.
BTC technical outlook
On the 4-hour chart, Bitcoin is trading within an ascending parallel channel marked by higher highs and higher lows between two upward-sloping lines — a pattern that often signals a continuation of the prevailing uptrend.
After touching the channel’s upper boundary, BTC is now pulling back, with a dip toward $120,500 possible by the end of the session. Holding that support could pave the way for another push toward $127,000, provided the channel remains intact.
A bullish “golden cross” — with the 50-day moving average crossing above the 200-day moving average — reinforces the positive trend momentum.
