Bitcoin has yet to top out: These are the key levels to watch

Bitcoin price surpasses $120.000 again, eyeing new highs, experts say.

Bitcoin is trading above $120.000 and maintains a technical structure that suggests continuity in the current bullish rally. 

Despite experiencing occasional corrections, which brought it to a price close to $115.900 on July 15, the dominant cryptocurrency is showing resilience, continuing to attract institutional capital, and technical analysts are identifying critical areas that could determine its price direction in the coming weeks.

Bitcoin consolidates above $120.000: a pause before the next surge?

In recent days, Bitcoin has made it clear that it remains a dominant force in the cryptocurrency market. 

On July 14th, a new peak was reached all-time record of $123.091, a move that raised alarm bells and sparked excitement in the crypto world. However, after that spike, the cryptocurrency's price paused and dropped to around $115.900 before stabilizing around the $120.500 it's currently trading at. Data from the CoinGecko platform shows that the BTC price has risen by nearly 3% over the past seven days. 

According to experts, this consolidation phase in the BTC price is occurring within a fairly defined technical range, with support levels at $115.000 and resistance near $125.000 playing a crucial role in determining the digital asset's next course.

A detailed analysis shows that the break above $118.000 was the spark that sparked an intraday rally, driven in part by massive short-position liquidations that exceeded $20 million in just one hour. This indicates that there is still plenty of momentum and potential for abrupt short-term moves. In fact, Experts set the next big target at around $130.000 per BTC., which could be the natural ceiling of this bullish cycle, before any type of correction or longer pause occurs.

Technically, Bitcoin maintains a solid position, trading above its short- and medium-term moving averages, which is typically a sign of strong support. However, volume has shown a slight decline, around 15% below the monthly average, which may limit the strength of the upside for now. 

Institutional and regulatory context: the backing behind the price

In July, the Bitcoin scene was filled with positive news, thanks to a macroeconomic and regulatory environment that clearly gave it a much-needed boost. 

In Washington, the House of Representatives has passed three key pieces of legislation for the market: the Genius Act, the CLARITY Act, and the Anti-CBDC LawThese legislative initiatives promise to provide a clearer and more robust legal framework for digital assets, something the market has been waiting for for some time. Therefore, this legislative advance is generating great optimism, acting as an engine driving innovation within the crypto market.

Meanwhile, institutional investors are taking note and increasing their positions. Firms like BlackRock have surpassed $80.000 billion in assets under management through their iShares Bitcoin Trust, demonstrating a firm and structured commitment to Bitcoin. Elsewhere in the world, El Salvador continues to strengthen its position as a pioneer in cryptocurrency adoption, increasing its strategic reserve of BTC just as prices are rising, thus consolidating its sovereign strategy in terms of crypto assets.

This set of factors, from regulatory clarity to strong institutional and sovereign demand, is redefining the Bitcoin narrative, bringing it to a stage where it could become more accessible and trustworthy to a much broader spectrum of market participants.

Bitcoin or altcoins? Capital still trusts the queen.

While Bitcoin has accumulated an annual increase of nearly 90%, altcoins such as Ethereum and Solana have registered much more modest increases, between 5% and 14%, respectively, during this same period. 

Thus, although analysts and market experts talk about a possible altseason imminent, BTC's market dominance remains at around 60%, reflecting a clear preference for the reigning cryptocurrency. This performance suggests that, at least for now, institutional and retail capital continues to consider Bitcoin the most reliable crypto asset on the market. 

Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.