Bitcoin price hits new all-time high, what’s next? That’s the big question on traders’ minds as BTC soared past $124,000, fueled by rising expectations of a Federal Reserve rate cut in September and supported by bullish U.S. CPI data.
Bitcoin’s Latest Rally to Record Levels
According to data from crypto.news, Bitcoin surged more than 8.5% in the past week, peaking at $124,128 during early Friday trading in Asia. As of press time, BTC is trading near $123,197, still holding a 32% gain year-to-date and an impressive 62% jump from this year’s low.
The rally gained momentum after the U.S. July CPI report showed annual inflation at 2.7%, matching June’s figure and slightly below the 2.8% forecast. Month-on-month, prices rose 0.2%, easing from June’s 0.3% gain — a sign of cooling inflation that boosted investor confidence.
Macro Tailwinds: Fed Rate Cut Expectations
The CME FedWatch Tool now shows a 95.8% probability of a September Fed rate cut. Lower interest rates typically enhance liquidity, pushing investors toward risk-on assets like Bitcoin in search of higher yields.
Spot Bitcoin and Ethereum ETFs have amplified the bullish sentiment. Data from SoSoValue reveals that 12 spot BTC ETFs attracted over $1 billion in net inflows in the last five trading days, while Ether ETFs pulled in a similar amount on Tuesday alone.
Short Squeeze Adds Fuel
CoinGlass liquidation heatmaps show that BTC’s breakout above $124,000 triggered a wave of short liquidations, particularly in the $124,000–$126,000 range. This forced short covering added upward momentum to the rally.
However, the chart also highlights a cluster of long liquidation levels around $120,000–$121,000. A retracement into this zone could spark forced selling, accelerating downside pressure.
BTC Price Analysis & Technical Outlook
On the 4-hour chart, Bitcoin has formed an ascending parallel channel — a bullish formation defined by higher highs and higher lows within two upward-sloping lines.
Currently, BTC is pulling back after testing the channel’s upper boundary, with potential support near $120,500. If buyers defend this zone, the next upside target sits around $127,000.
Adding to the bullish case, the 50-day moving average has crossed above the 200-day moving average, a golden cross that signals sustained upward momentum.
What’s Next for Bitcoin?
If support near $120,500 holds, Bitcoin could continue its climb toward the $127,000 mark within the ascending channel. On the flip side, a break below the $120,000–$121,000 long liquidation zone could trigger a sharper pullback.
For now, Bitcoin price hits new all-time high, what’s next? The answer depends on whether bulls can defend key support zones while ETF inflows and macroeconomic tailwinds remain in play.
