Bullish Outlook:
- Buy the BTC/USD pair with a target at $125,000.
- Stop-loss: Set at $112,000.
- Timeframe: 1-3 days.
Bearish Outlook:
- Sell the BTC/USD pair with a target at $112,000.
- Stop-loss: Set at $125,000.
BTC/USD Analysis for August 12: Extreme Bullish Sentiment Above $123,000
Bitcoin continues to show resilience, maintaining strong support levels despite minor setbacks. On Tuesday, BTC/USD was trading at $118,820, retreating from a high of $122,435 earlier in the week. Bitcoin remains approximately 60% above its lowest point in April.
BTC/USD Technical Breakdown:
- Key Support: Bitcoin is still trading well above the 50-day and 100-day Exponential Moving Averages (EMAs), which have historically supported its bullish trend.
- All-Time High: Bitcoin is approaching its all-time high of $123,200, a critical level that could signal further bullish movement if surpassed. A breakout above this price could indicate a stronger uptrend.
- Bearish Risks: The pair has recently formed a double-top pattern, a bearish signal, with a neckline near $112,000. Additionally, the appearance of a shooting star candlestick adds further bearish pressure. This pattern is commonly associated with a potential price reversal.
The future direction hinges on whether Bitcoin breaks through $123,200. A move above this resistance would likely propel Bitcoin towards the next major target at $125,000. Conversely, failure to breach this level could lead to a retreat, possibly testing the $112,000 support.
Market Sentiment: The Impact of US CPI Data on BTC/USD
The upcoming US Consumer Price Index (CPI) data is the next major catalyst for Bitcoin. Analysts expect the headline CPI to rise to 2.8%, slightly higher than the previous month’s data, reflecting continued tariff effects.
A weaker-than-expected CPI report could boost risk assets, including Bitcoin, driving it higher as investors shift their focus to cryptocurrencies and stocks. Moreover, Bitcoin has attracted significant investor interest, with spot exchange-traded fund (ETF) inflows growing by over $54 billion since their launch, signaling strong appetite for the digital asset.
Stay updated with Daily Forex Pakistan.