Bitcoin hits record high. What’s next?

Bitcoin surged to a new all-time high above $124,000 on Friday, driven by growing market confidence that the U.S. Federal Reserve will cut interest rates in September. The rally followed the release of the July U.S. Consumer Price Index (CPI) report, which strengthened investor sentiment toward risk assets such as cryptocurrencies.

Data from crypto.news shows BTC gained over 8.5% in the past week, peaking at $124,128 during early Asian trading hours before pulling back slightly to $123,197 at press time. Even after the dip, Bitcoin remains up 32% year-to-date and more than 62% from its yearly low.

CPI Data and Fed Outlook Boost Risk Appetite

The July CPI report revealed that annual inflation held steady at 2.7%, matching June’s figure and beating the 2.8% forecast. Month-over-month consumer prices rose by just 0.2%, down from a 0.3% increase the previous month.

Following the data release, the CME FedWatch Tool indicated a 95.8% probability of a Fed rate cut in September. Lower borrowing costs and increased liquidity typically encourage investors to rotate into higher-risk assets, with Bitcoin often benefiting from such shifts.

ETF Inflows Fueling the Rally

Institutional demand has also played a major role in Bitcoin’s surge. SoSoValue data shows that the 12 spot Bitcoin ETFs attracted over $1 billion in net inflows over the last five trading days. Ethereum ETFs saw a similar spike, pulling in around $1 billion in a single day on Tuesday. This wave of capital has reinforced bullish momentum across the crypto market.

At the same time, CoinGlass liquidation data highlights that Bitcoin’s push to new highs triggered a wave of short liquidations, especially in the $124,000–$126,000 range, as traders betting against the rally were forced to close positions. This short covering further accelerated BTC’s rise. However, a dense cluster of long liquidation levels sits between $120,000 and $121,000, suggesting that a price drop into this range could prompt heavy selling pressure.

Technical Outlook: Uptrend Still Intact

On the 4-hour chart, Bitcoin appears to be trading within an ascending parallel channel — a pattern characterized by higher highs and higher lows between two upward-sloping trend lines. This setup often signals a continuation of the prevailing bullish trend.

After touching the channel’s upper boundary, BTC is currently in a mild pullback, with a potential move toward the $120,500 support zone expected by the end of the session. If that level holds, the next upside target could be around $127,000, assuming price action remains within the channel.

Adding to the bullish case, the 50-day moving average has crossed above the 200-day moving average — a “golden cross” that typically indicates strong and sustained upward momentum.