Analysts believe a bitcoin rally to $127,000 is possible if the cryptocurrency closes above the $120,000 mark on strong trading volume, but they also warn of the possibility of a retest of the $114,000 to $116,000 range if the rally is rejected.
BTC Enters ‘Pending Confirmation’ Phase
Bitcoin (BTC) surpassed the $122,000 mark late on August 10, marking the first time it has tested that level since July 14. The flagship cryptocurrency’s rally has reignited hopes of another record-breaking rally, just days after it dipped below $113,000 for the second time in August.
Although it later returned above $120,000 a few hours later (7:18 a.m. EST on August 11), some analysts still believe that BTC could still sustain a potential rally to reach a new all-time high. Experts from digital asset platform Bitunix assert that a peak of $127,000 is possible, provided one condition is met.
“BTC is currently in a confirmation phase. If BTC can break out with volume and close above 120k on the daily chart, then the next targets will be 124k and 127k. If it rejects at 120k or forms a long tail at the highs, then a retest of 116k–114k is possible,” the Bitunix expert said in his latest recommendation.
To prepare users for potential volatility, Bitunix recommends setting a strict limit on potential losses for each individual position, with stop losses kept within a predetermined range of 5% to 8% of their total capital. This strategy prevents a single unsuccessful trade from causing serious damage to an entire portfolio. Investors are also encouraged to use stepped-up entry points and apply trailing stops, ensuring that losses are manageable and predictable.
Meanwhile, Bitunix’s recommendation also urged investors to keep an eye on CPI data, due for release on August 12, and Moody’s tracking reports. In a recent post on X, Mark Zandi, chief economist at Moody’s Analytics, reiterated his warning that the US economy is on the brink of a recession but concluded that “we’re not there yet.”
The latest CPI data, released by the Bureau of Labor Statistics (BLS), showed that overall inflation rose to 2.7% in June. The stronger-than-expected inflation data reinforced market sentiment that the US Federal Reserve will not yield to President Donald Trump's demands for a rate cut.
According to Bitunix experts, these events have the potential to change market sentiment; therefore, investors should take note of this.
“Keep a close eye on tomorrow’s CPI release and Moody’s follow-up reports, as sudden macro headlines can instantly change the direction of the market,” Bitunix said.
