The price of $BTC fluctuated slightly during trading on Wednesday amid improved risk appetite following a trade agreement between the United States and Japan, yet the largest cryptocurrency in the world continues to move within a narrow trading range after recording all-time highs earlier this month.
Bitcoin traded down by 0.5% to reach $118,582.7 as of 1:13 PM GMT on CoinMarketCap.
Despite previous rises, Bitcoin remained stuck in a technical consolidation zone after its rise last week to a new record level exceeding $123,000. The market has reduced its gains amid investors tracking global regulatory and economic developments.
The U.S.-Japan trade agreement enhances global risk appetite
The overall market sentiment remained broadly positive, supported by U.S. President Donald Trump's announcement of a wide-ranging trade agreement with Japan, which boosted high-risk assets worldwide.
Trump stated that Washington and Tokyo reached an agreement that includes a 15% tariff on all imports from Japan, down from a previously proposed rate of 25%.
The United States also received $550 billion in Japanese investments in the American economy under the agreement. The agreement includes opening Japanese markets to American exports such as cars, agricultural products, and energy sources, boosting optimism about global trade and demand growth.
Risk assets globally have risen, while gold prices have decreased, reflecting an improvement in risk appetite.
Despite the improvement in sentiment, Bitcoin continued to trade within narrow ranges, as investors remained cautious awaiting further trade progress before the deadline on August 1.
Additional support from crypto regulations in the United States and anticipation for the Federal meeting
The cryptocurrency market received additional support from the passing of important regulatory legislation in the U.S. last week.
President Trump signed the GENIUS Act, which establishes a federal regulatory framework for stablecoins. The U.S. House of Representatives also passed two other key bills, both of which are expected to move to the Senate.
Investor attention is now focused on the upcoming Federal Reserve meeting on July 30, looking for indications regarding the future path of interest rates.
Is Bitcoin preparing for a rise of more than 20%?
Analysts believe that$BTC on the brink of a strong expansion phase that may drive it towards new price peaks. Technical analyses indicate that the digital currency is currently in a consolidation phase within a bullish chart pattern known as the "bull flag", which may pave the way for an upward price explosion in the near term.
After surpassing the historical level of $122,000, the price entered a resting period around $118,000, which analysts consider temporary, with expectations of new highs that could push Bitcoin to $140,000.
Strong technical indicators support the rise
The charts showed$BTC several bullish technical patterns:
The "bull flag" pattern, which is considered a classic signal for completing the upward trend.
The "inverted head and shoulders" pattern on the three-hour timeframe also targets $140,000.
Additionally, the level of $139,000 intersects with strong technical resistance according to the MVRV Bollinger Band.
Could the price drop to $115,000?
Despite the optimism, some analysts believe the price may experience a short-term correction to the level of $115,000 to test the support level before resuming its upward trajectory. They see this as providing additional buying opportunities for investors before the next surge. However, this scenario is not guaranteed or necessarily to happen.
Most technical signals and analyses indicate that Bitcoin is on its way to a strong upward wave. With the price currently stabilizing above $118,000, the next target at $140,000 seems possible, especially if institutional flows and the momentum of supportive U.S. legislation for the sector continue.
Investors should closely monitor support and resistance levels to capitalize on upcoming opportunities in the market.
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