Bitcoin Price Tests $122K Resistance as Institutional Demand and Policy Shifts Fuel Rally
BTC nears all-time high; corporate treasuries, ETF inflows, and on-chain strength set stage for a potential run toward $130K | That's TradingNEWS
Bitcoin (BTC-USD) Approaches All-Time High as Corporate Buying and Policy Shifts Fuel Rally
Institutional Demand and Macro Tailwinds Intensify BTC Momentum
Bitcoin (BTC-USD) surged to $122,355 in European trading, just shy of July’s record $123,218, before settling around $121,625 (+2.84%). The rally’s backbone is an aggressive wave of institutional accumulation, with corporate treasuries securing nearly 5,000 BTC between August 4–10. Notably, MicroStrategy (NASDAQ:MSTR) added 155 BTC at an average of $116,401 per coin, expanding its holdings to 628,946 BTC—valued at roughly $76 billion and representing close to 3% of total supply. With $30 billion in unrealized gains, MSTR’s treasury positioning continues to serve as a market signal for other corporations considering Bitcoin as a strategic reserve asset.
Technical Breakout Targets and Resistance Zones
BTC’s latest upswing is testing the 1.618 Fibonacci extension from both the 2018 and 2022 cycle lows, anchored at the $122,000 mark—a level that has historically triggered profit-taking. The daily chart shows BTC trading inside a broad ascending channel, with higher highs and higher lows intact since April’s post-halving rally. Clearing $123,000 could unlock a path to $127,000 (61.8% extension), $137,000 (100% extension), and $153,000 (161.8% extension). Short-term support sits at $120,000, with deeper retracement levels near $116,000–$117,000 (0.5–0.618 retracement) if sellers gain traction.
Policy Shifts and Regulatory Clarity Driving Risk-On Flows
The U.S. administration’s recent executive order allowing cryptocurrency allocations in 401(k) retirement accounts has opened the floodgates for a new class of long-term buyers. Combined with the earlier approval of spot Bitcoin ETFs—pulling in $404 million in net inflows on August 8 alone—this regulatory shift cements BTC’s position in mainstream investment portfolios. Markets also anticipate a September Fed rate cut, with futures pricing in an 87% probability. Lower yields historically favor alternative assets, bolstering Bitcoin’s role as a store of value amid tariff-driven inflation risks.
On-Chain Metrics Highlight Supply Squeeze
Exchange reserve data confirms a continued decline in tradable BTC, as long-term holders accumulate rather than distribute. Daily creation of new BTC addresses has hit 364,126—a one-year high—underscoring network growth. The derivatives market shows over $3 billion in open interest clustered around the $140,000 strike, hinting that professional traders expect significant upside before year-end.
Altcoin Correlations and Market Spillover
The bullish tone in BTC is lifting the broader crypto market. Ethereum (ETH-USD) trades at $4,278, extending gains after surpassing $4,000 for the first time since 2021. XRP (XRP-USD) has surged to $3.33 (+3.5%) after the SEC dismissed its case against Ripple, triggering a 208% spike in institutional trading volumes to $12.40 billion. Select high-beta altcoins such as Solana (SOL-USD) and meme tokens have shown mixed performance, with capital rotation favoring assets tied to Bitcoin infrastructure plays.
Corporate Treasury Trends and Strategic Positioning
Beyond MSTR’s aggressive accumulation, several public companies have either initiated or expanded BTC reserves this month. Six new treasuries entered the market, while 24 existing holders increased exposure. Upcoming filings suggest another $145 million in planned allocations. This corporate demand is not only shrinking available supply but also reinforcing Bitcoin’s perception as “digital gold” among CFOs and investment committees.
Mining Economics and Network Health
Bitcoin’s hashrate and miner revenues are hitting record highs, reflecting network security strength and miner confidence. Elevated difficulty levels are being met with increased operational capacity, indicating that mining profitability remains resilient despite BTC’s consolidation under $123,000. This robust mining backdrop adds fundamental support to bullish price projections.
Investor Sentiment and Risk Factors
The Crypto Fear & Greed Index now sits firmly in the “greed” zone, consistent with prior pre-breakout setups. However, the proximity to all-time highs introduces risk of a short-term shakeout, especially with Tuesday’s CPI print and Thursday’s PPI release looming. Any upside surprise in inflation could temporarily dampen risk appetite and trigger profit-taking.
Short-Term Outlook and Market Positioning
If BTC closes above $120,000 today—a feat not achieved at its last ATH attempt—it would mark the highest daily close in history, strengthening the case for a breakout toward $130,000 in the next trading leg. Failure to sustain above $120K could invite a retest of $116K support, but with corporate treasuries, ETFs, and policy shifts driving structural demand, downside risk appears cushioned.
