Despite the late-week surge bringing Bitcoin within reach of $120,000, the momentum paused. However, the sustained Bitcoin price in the vicinity of $119,000, according to Cointelegraph Markets Pro and TradingView data, has instilled a sense of optimism among traders. Crypto Tony, a well-known trader, opines that once Bitcoin retains its value over $117,000, new all-time highs could be imminent.

Rekt Capital, a popular analyst, suggests that Bitcoin has initiated a bull flag with its weekly close around $119,450. He predicts a potential retest of the $119,200 support level in the upcoming week. However, Bitcoin needs to circumvent an upside wick beyond the Bull Flag Top resistance to remain within the range.

As the Federal Reserve’s interest rate decision is due, the market is buzzing with anticipation. The GDP of Q2 is to be announced just hours before the Federal Open Market Committee (FOMC) meeting on Wednesday. The following day, the market will witness the release of the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index. Market participants are eager for clues on potential rate cuts in the remaining meetings of the year.

Adding a dash of optimism in the risk-asset market is the recent US-EU trade deal. This agreement has spurred a rally in US stocks futures, with the S&P 500 opening above 6,400 for the first time. Both President Trump and European Commission President Ursula Von Der Leyen have lauded this as the “biggest trade deal ever.” The easing of trade tensions and liquidity tailwinds have pushed the S&P 500 to new highs while volatility subsides.

Bitcoin’s performance in July 2025 may seem impressive at around $120,000, but past performances during July have been even more favorable. Data from CoinGlass shows that Bitcoin is only marginally above the average for the past 12 years. However, Bitcoin bulls need to maintain early July gains to show positive momentum.

Lastly, the stablecoin supply ratio (SSR) highlights a potential cap on Bitcoin price upside until it resolves. An increase in SSR could indicate a lack of stablecoin liquidity available for investment. CryptoQuant, an on-chain analytics platform, suggests that the market may be entering a period of temporary saturation.

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