Bitcoin surged past the $122,000 mark late on Aug. 10, testing that level for the first time since July 14. The rally has rekindled hopes of another all-time high, but analysts caution that confirmation is still needed. According to a Bitunix analyst, Bitcoin is currently in a 'wait-for-confirmation' phase. A daily close above $120,000 with strong volume would open the path to $124,000 and $127,000. Conversely, rejection at $120,000 or a long upper wick could trigger a retest of the $116,000–$114,000 range.
Bitcoin Enters 'Wait-for-Confirmation' Phase
The Bitunix analyst stated in a recent recommendation: 'If BTC can break out with volume and close above 120k on the daily chart, the next targets will be 124,000 and 127,000. If it gets rejected at 120k or forms a long upper wick at highs, a retest of 116k–114k is possible.' Volume is considered the key factor to distinguish a genuine breakout from a false one. Without sufficient volume, the rally may lack sustainability.
To prepare for potential volatility, Bitunix advises traders to set strict stop-loss limits between 5% and 8% of their total capital per position. This approach prevents a single failed trade from devastating an entire portfolio. Additionally, scaled entries and trailing stops are recommended to keep losses manageable and predictable.
Macro Data Could Shift Market Sentiment
Bitunix also urges investors to monitor the upcoming Consumer Price Index (CPI) data scheduled for release on Aug. 12, as well as Moody's follow-up reports. The last CPI reading from the Bureau of Labor Statistics showed overall inflation rose to 2.7% in June, stronger than expected. This data solidified market expectations that the Federal Reserve would not yield to President Trump's demand for an interest rate cut. Moody's Analytics chief economist Mark Zandi recently warned that the U.S. economy is on the precipice of a recession but concluded that 'we are not there yet.'
These macro events can instantly shift market direction. Bitunix emphasized: 'Closely monitor tomorrow's CPI release and Moody's follow-up reports, as sudden macro headlines could instantly shift market direction.'
In summary, Bitcoin's short-term trajectory hinges on its ability to hold above $120,000 with strong volume. Failure to do so may lead to a pullback to the $114,000–$116,000 range for consolidation before the next move. Investors should combine technical analysis with macroeconomic data and practice robust risk management.