Current Dynamics
The BTC/USD pair continues its rapid bullish dynamics, and the price of the first cryptocurrency has reached an all-time high of 122700.00 supported by two main factors: trade and cash.
Since the beginning of the week, the White House has been actively sending notifications to partners regarding an increase in tariffs starting from August 1 by a range of 25%-50%. The governments of Japan, South Korea, and Brazil, which have high trade transactions with the United States, announced their receipt of the tariffs, but market participants remain focused on adjusting the rate to 30% on imports from the European Union and Mexico. According to 2022 data, these countries imported goods worth $533 billion and $455 billion respectively, which together accounts for about a third of total U.S. imports. Investors fear that tightening conditions could increase pressure on the economy and lead it into a recession in the near future, especially since the latest minutes from the U.S. Federal Reserve indicate that most officials are not prepared to adjust borrowing costs before the end of this year.
Experts indicate that one additional factor behind the rise in the price of 'digital gold' is the concern among market participants regarding the outlook for U.S. government debt. After the passage of the (One Big Beautiful Bill Act), launched by the White House, which represents a comprehensive economic program embodying the politician's campaign promises, its ceiling has increased by $5 trillion, becoming the largest one-time correction in U.S. history. Under these circumstances, BTC and cryptocurrencies in general are considered safe assets, which boosts their prices. Nevertheless, this massive volume of purchases is currently attributed to big players, as the price of the first cryptocurrency has now become too high for retail investors. This is also confirmed by the change in Bitcoin-ETF balance, which reached $2.7175 billion during the week.
Support and resistance levels
The tool has exited the side range between 111000.00-100000.00, and has settled above the mark of 121875.00 (Murray Level [7/8]), allowing exchange rates to test targets of 125000.00 (Murray Level [8/8]) and 128125.00 (Murray Level [+1/8]).
Technical indicators suggest the current trend will continue: Bollinger Bands are trending upwards, the MACD indicator is increasing in the positive zone, while the Stochastic indicator is moving horizontally in the overbought area. Prices exceeding the upper line of the Bollinger Bands do not rule out a correction to the area of 112500.00 (Murray Level [4/8]), but it is unlikely to lead to a change in trend.
Resistance levels: 125000.00, 128125.00.
Support levels: 115625.00, 112500.00.
