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    BTC Breakout Triggers: Decoding the Next Rally

    Key Points:

    • For Bitcoin to surge to unprecedented highs, it needs to convincingly break through the $120,000 resistance level.

    • A resurgence in spot market volume and overall trading activity is essential for Bitcoin’s price to escape its current range.

    Bitcoin’s ascent towards its peak value, nearing $123,000, seems to have lost some momentum. However, analysts suggest that Bitcoin is still on a trajectory for substantial growth, with some anticipating significant upward movement in 2025.

    Various experts are outlining the factors necessary for Bitcoin to potentially enter a new phase of price discovery in the near future.

    Bitcoin Needs to Surpass $120,000 Hurdle

    The price of Bitcoin (BTC) has been fluctuating within a range of $115,000 to $120,000, finding support around the lower end of this band, according to data sourced from Cointelegraph Markets Pro and TradingView.

    A positive outlook for Bitcoin depends on its ability to convert the $119,000-$120,500 resistance area into a reliable support level.

    Related: Bitcoin Approaches $120K as Analysts Foresee Increased Price Volatility

    Private wealth management firm Swissblock stated in a Monday post on X that Bitcoin needs to “confidently break above $120,500 with strong volume” this week. said.

    Swissblock also suggested that the current price consolidation resembles a descending triangle pattern—a pattern often signaling a continuation of the existing trend. This indicates a period of stabilization rather than a significant downturn.

    “The bulls remain in charge,” Swissblock concluded.

    Bitcoin price chart. Source: Swissblock

    Another analyst, Rekt Capital, stated that Bitcoin proponents need to retest the weekly closing price of $119,200 and establish it as a support level to “confirm a true breakout.”

    <p>As Cointelegraph <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/price-predictions-7-28-spx-dxy-btc-eth-xrp-bnb-sol-doge-ada-hype" title="null">previously reported</a>, bullish investors are aiming to overcome the $120,000-$123,000 resistance range, setting their sights on a subsequent target of <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-price-likely-to-hit-dollar130k-before-serious-profit-taking-kicks-in" title="null">$130,000</a>.</p>
<h2>Influx of New Bitcoin Investors Needed</h2>
<p>Bitcoin's upward trajectory beyond $120,000 is seemingly constrained by a lack of new buyers.</p>
<p>The spot Cumulative Volume Delta (CVD) metric for Bitcoin, which assesses the difference between buying and selling volumes, shows that net spot buying on exchanges remains in negative territory.</p>
<p>However, there's been a notable improvement in this metric, shifting from -$243.3 million to -$111.3 million. This, as Glassnode pointed out in their latest Weekly Market Impulse report, "indicates a considerable decrease in the dominance of sellers and increasing buyer interest."  <a data-ct-non-breakable="null" href="https://www.papermark.com/view/cmdn8h27z0004ks041nzs8g8d" rel="noopener nofollow" target="_blank" title="null">said</a></p>
<blockquote data-ct-non-breakable="undefined">"This shift likely points to a renewed accumulation phase, with investors capitalizing on recent price dips, suggesting an overall more optimistic sentiment."</blockquote>
<p>Continued buying activity could amplify the demand required to propel Bitcoin out of its current consolidation phase.</p>
<figure><img src="https://s3.cointelegraph.com/uploads/2025-07/0198554a-570f-7264-9858-7774cbfeb3a8" title=""/><figcaption style="text-align: center;"><em>Bitcoin’s spot volume delta. Source: Glassnode</em></figcaption></figure>
<p>Additionally, spot trading volumes have experienced a slight decrease, moving from $9.2 billion to $8.6 billion over the past week, which highlights the decreased speculative fervor.</p>
<p>While not a drastic decline, Glassnode suggests this reduction points to "lower investor engagement," adding:</p>
<blockquote data-ct-non-breakable="undefined">"The moderation in volume suggests that participants are adopting a wait-and-see stance, lacking the conviction to engage in aggressive buying or selling activities."</blockquote>
<figure><img src="https://s3.cointelegraph.com/uploads/2025-07/0198554a-5c2b-7303-8dfa-37d7d083e2cd" title=""/><figcaption style="text-align: center;"><em>Bitcoin spot volume. Source: Glassnode</em><br/></figcaption></figure>
<p>An increase in spot trading volume would correspond with a <a href="https://cointelegraph.com/news/key-altcoin-season-metric-in-accumulation-mode-as-bitcoin-dominance-peaks" rel="" target="_self" title="https://cointelegraph.com/news/key-altcoin-season-metric-in-accumulation-mode-as-bitcoin-dominance-peaks">wider phase of accumulation</a>, which could trigger a robust price rally.</p>
<h2>Bitcoin Needs to Confirm Falling Wedge Breakout</h2>
<p>Technical indicators suggest Bitcoin has broken out of a falling wedge pattern on the four-hour chart.</p>
<p>A falling wedge pattern is generally considered a bullish signal. It's formed by converging trendlines sloping downwards, indicating a reduction in selling pressure and a potential for an upward breakout.</p>
<p>Mister Crypto <a href="https://x.com/misterrcrypto/status/1950084122715754875" rel="nofollow noopener" target="_blank" title="https://x.com/misterrcrypto/status/1950084122715754875">said</a> on X Tuesday, "Bitcoin has broken out of this falling wedge pattern," adding:</p>
<blockquote data-ct-non-breakable="undefined">"A significant pump is coming."</blockquote>
<figure><img src="https://s3.cointelegraph.com/uploads/2025-07/0198554a-6170-7203-95df-b1b4adfe9fe2" title=""/><figcaption style="text-align: center;"><em>BTC/USD chart. Source: Mister Crypto</em></figcaption></figure>
<p>To confirm this breakout, the BTC/USD pairing needed to retest the wedge's upper boundary around $118,300, where the 50-period and 100-period SMAs converge, and establish it as a support level.</p>
<p>According to trader Crypto Boss, this retest has already been successfully completed, paving the way for a rally to new all-time highs.</p>
<blockquote data-ct-non-breakable="undefined">"$BTC breakout and retest done. Send it to new ATHs now."</blockquote>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr"><a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> breakout and retest done. Send it to new ATH now <a href="https://t.co/YzShMlf7GH">pic.twitter.com/YzShMlf7GH</a></p>— CryptoBoss (@CryptoBoss1984) <a href="https://twitter.com/CryptoBoss1984/status/1950088469595775376?ref_src=twsrc%5Etfw">July 29, 2025</a></blockquote>

<p class="post-content__disclaimer" type="">This information is for informational purposes only and should not be considered financial advice. Investing in cryptocurrencies involves substantial risk, and you should conduct thorough research before making any investment decisions.</p>
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