Trading Bitcoin's all-time high in July
Breakout in price finally sees $118,000, keeping technicals bullish in both daily and weekly time frames.
Crypto enthusiasts finally got the breakout they were looking for, with big gains over the past two days gifting them a record high, and all that before today’s larger breakout that took it to $118,000. Altcoins usually throw a party when there’s upside movement in Bitcoin notable enough to attract trader interest, and they outperformed with Ether reaching $3K for the first time since January, and Pepe enjoying double-digit percentage gains.
Catalysts
They usually take on a mind of their own, but there have actually been interesting catalysts cited including
- Institutional interest rising even as Strategy’s Saylor spoke of “HODL” (Hold On for Dear Life”,
- The latest weekly Digital Asset Fund Flows report out of CoinShares showing inflows for both Bitcoin and Ether, and where both are up year-to-date,
- Worries over US monetary policy loosening as the Trump administration piles more pressure on the Federal Reserve to cut rates sizably,
- Fiat in focus especially with rising deficits weighing on already large government debts,
- Tech taking some attention after Nvidia’s notable $4tn market cap,
- And a possible short squeeze given the long/short ratio on Binance is showing buys are a minority while most traders are holding sell positions
Bitcoin’s technical overview, strategies and levels
It doesn’t take much to realize that with a record high, the technicals are going to be bullish with price above all its main moving averages on the daily and weekly time frames, walking the upper band of what are narrowed daily Bollinger Bands, a positive DMI (Directional Movement Index) with a big gap for the +DI over the -DI, its RSI (Relative Strength Index) in overbought territory, and an ADX (Average Directional Movement Index) rising even if not in trending territory just yet. The technical overview is ‘bull average’ on the daily time frame meaning buy strategies are in the conformist camp while sell strategies are reserved for contrarians, but even then, ideally only after a significant reversal and simple reversal, respectively, given the uptick in volatility a record high in the crypto sphere usually brings.
Price has already blown past the 1st and 2nd Daily Resistance levels offering conformist buys a trade and an edge, and looking at the weekly side – where it was and still is a ‘bull average’ technical overview – and it has breached the weekly 1st Resistance. The 2nd Resistance, which is usually the second line of defense and a bit stronger on the longer-term time frame, isn’t that far off from being breached at this stage either as of publishing.
Capital.com’s client sentiment for Bitcoin
Traders are majority buy on our end with 72% holding long positions compared to 73% yesterday as some longs were enticed into closing out, but keep in mind the longer this goes and it might entice range-traders into trend-trading strategies meaning it’ll need to offer a noteworthy price change to significantly reduce that long bias.
CoT speculators are slight sell 52% but is of little significant given many are taking part in arbitrage strategies and in turn isn’t as reflective of where speculators at their core stand.
Client sentiment mapped on the daily chart
Source: Capital.com
Period: May 2025 – July 2025
Past performance is not an indicator of future results.
Bitcoin’s chart on Capital.com's platform with key technical indicators
Source: Capital.com
Period: May 2025 – July 2025
Past performance is not an indicator of future results.
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