Bitcoin showed slight fluctuations during Wednesday trading as risk appetite improved following a trade agreement between the United States and Japan. However, the world’s largest cryptocurrency remains locked in a narrow trading range after hitting record highs earlier this month.
As of 13:13 GMT, Bitcoin was down 0.5% at $118,582.7 on CoinMarketCap.
Despite recent gains, Bitcoin has remained in a technical consolidation zone after surging to a new all-time high above $123,000 last week. The market has since trimmed gains amid continued monitoring of global regulatory and economic developments.
US-Japan trade deal lifts global risk appetite
Overall market sentiment remained broadly positive, supported by President Donald Trump’s announcement of a wide-ranging trade agreement with Japan, which boosted risk assets worldwide.
Trump stated that Washington and Tokyo agreed to a 15% tariff on all Japanese imports—lower than the previously proposed 25%.
Under the deal, the United States also secured $550 billion in Japanese investments in the US economy. The agreement opens Japanese markets to American exports including cars, agricultural goods, and energy products, bolstering optimism over global trade and demand growth.
Risk assets rose globally, while gold prices declined, reflecting improved risk sentiment.
Still, Bitcoin continued to trade within tight ranges, as investors remained cautious awaiting further trade progress before the August 1 deadline.
Additional boost from US crypto legislation and Fed meeting in focus
The crypto market received further support from the recent passage of key regulatory legislation in the United States.
President Trump signed the GENIUS Act into law, establishing a federal regulatory framework for stablecoins. The House of Representatives also passed two other major crypto-related bills, both now heading to the Senate.
Investor attention is now focused on the upcoming Federal Reserve meeting on July 30, in search of signals on the future path of interest rates.
Is Bitcoin poised for a 20% rally?
Analysts suggest that Bitcoin may be on the verge of a strong breakout that could lead to new all-time highs. Technical indicators show that the digital asset is currently in a bullish continuation pattern known as a “bull flag,” which could soon trigger a price surge.
After breaching its historical level at $122,000, the price has entered a consolidation phase near $118,000, which analysts view as temporary. Many expect a move toward $140,000.
Technical indicators support the bullish case
Bitcoin charts show several bullish patterns:
– A bull flag pattern, a classic signal of trend continuation.
– An inverted head and shoulders on the 3-hour chart, also targeting $140,000.
– The $139,000 level aligns with strong resistance on the MVRV Bollinger Band indicator.
Could Bitcoin dip to $115,000 first?
Despite optimism, some analysts warn of a potential short-term correction to $115,000 to test support levels before resuming the uptrend. They see this as a buying opportunity for investors, though the scenario is neither guaranteed nor necessary.
Overall, technical signals and analysis suggest Bitcoin is on track for a strong upward wave. With price stability above $118,000, the $140,000 target appears feasible, especially if institutional inflows and supportive US legislation continue.
Investors are advised to closely monitor support and resistance levels to capitalize on upcoming market opportunities.
