Bitcoin Price Rally Continues with Strong Bullish Sentiment

Bitcoin has once again captured the attention of the crypto community with an impressive rally, rising another 3.5% today to break the important $122,300 level. This impressive rise in The Bitcoin price has analysts enthusiastically predicting a new breakout and potentially new all-time highs. The bullish sentiment in the market is evident, with daily trading volume up sharply by 30% to reach $80 billion. This strong indicator of trader confidence is supported by a 5.86% increase in open interest in BTC futures, which now stands at $83.75. Aggressive buying pressure is palpable, as evidenced by the liquidation of short positions worth over $100 million in the last 24 hours alone.

Technical Analysis Points to Key Resistance and Support Levels

The current rally has propelled Bitcoin to a crucial technical juncture. The digital asset is trading within a well-defined ascending channel and is currently testing the resistance at the $123,230 Fibonacci 1.0 level. A definitive breakout above this point could signal a powerful move towards $130,231, a target previously identified in technical analyses.

• Crucial Resistance & Support: On the downside, key support levels are established at $120,806 (Fib 0.786) and $118,903 (Fib 0.618). Maintaining the Bitcoin price above these levels would solidify the bullish outlook. Conversely, a drop and a sustained close below this support could indicate a loss of momentum and a potential reversal.

Analyst Perspectives on the Rally and Potential Pullbacks

The recent price action has prompted several prominent crypto analysts to weigh in on the future trajectory of Bitcoin.

• The CME Gap Factor: Renowned crypto analyst Rekt Capital observed that Bitcoin has successfully filled and reversed from its daily CME gap. However, this move has led to the formation of a new daily CME gap in the range of $117,700 to $119,200. This new gap aligns with a newly formed weekly CME gap, amplifying its technical importance. The market will be watching closely to see if the Bitcoin price revisits this level to fill the gap
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• Correction is Coming: Meanwhile, popular crypto analyst Michael van de Poppe has a more cautious outlook, anticipating a pullback in the BTC price. In a recent post on the X platform, Poppe warned of an upcoming “wild week” with increased volatility across all markets. He predicts that Bitcoin will see a rally to $120,000, followed by a correction that could trigger a sharp drop in altcoin prices.

On-Chain Data and Investment Flows Reinforce Bullish Case

Beyond the technical charts, on-chain data and investment product flows are painting a similarly optimistic picture.

• Renewed Institutional Inflows: According to leading investment platform CoinShares, Bitcoin investment products saw a significant inflow of $260 million last week. This marks a strong recovery after two consecutive weeks of outflows, indicating renewed institutional interest. Furthermore, short Bitcoin products saw $4 million in outflows, suggesting a decreasing bearish sentiment.
• Spot ETF Resurgence: Inflows into spot Bitcoin ETFs have also resumed, with a net inflow of $277 million on Friday, August 8. The BlackRock iShares Bitcoin Trust (IBIT) alone saw net inflows of $156 million on that day, a clear sign of renewed investor confidence and a strong signal for the Bitcoin price.
• Stronger Buying Pressure: Spot market data, as reported by CryptoQuant, further supports the bullish outlook. The Taker Buy/Sell Ratio has risen from a neutral 1.02 on August 10 to 1.14, its highest level since early July. This increase signifies stronger buying pressure, with aggressive buyers outperforming sellers in the market.

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El Salvador’s New “Bitcoin Bank” Signals Growing Adoption

On the global adoption front, El Salvador continues to lead the way. The country’s Bitcoin (BTC) office has announced groundbreaking plans to establish a state-run “Bitcoin Bank.” This would be the first national financial institution in the world dedicated exclusively to Bitcoin, further solidifying the cryptocurrency’s role in the global financial system and providing a strong, long-term bullish signal for the Bitcoin price.