Bitcoin news: BTC price surges above $122k as investors hedge against U.S. deficit
Bitcoin surges past $122,000, sets sights on $125K milestone
Bitcoin [BTC/USD] has extended its remarkable upward momentum, breaking into levels that have never been charted before.
Over the past week, the cryptocurrency has advanced 8.7%, pushing it 6% above its previous all-time high of $112,000 set in May. At the start of this new week on Monday, July 14, Bitcoin jumped again, adding 2.8% during the Asian and European sessions to trade above $122,000. This fresh surge has expanded the month-to-date gain to 13%, showcasing Bitcoin’s renewed strength and investor confidence.
Highlights
-Bitcoin hits a new record above $122,000 today as month-to-date gain climbs to 13%
-Monday’s rally adds 2.8% during Asian and European sessions as volume picks up
-RSI enters overbought territory and fear and greed index at 70 hint at volatility risk
The next psychological milestones lie at $125,000 and $130,000 in the near term, while in a broader horizon, market watchers are eyeing $150,000. The current rally is not happening in isolation. Bitcoin is increasingly viewed as a strategic hedge against a possible U.S. financial crisis, sharing the stage with gold as a safe haven asset.
BTC price dynamics (May - July 2025). Source: TradingView
Concerns over persistent deficit spending and the prospect of monetary policy easing through rate cuts have created an environment supportive of alternative assets. Bitcoin, in this context, has been described as the ultimate beneficiary, drawing strong demand from both institutional and retail investors seeking protection from a weakening dollar and inflationary pressures.
Bitcoin fear and greed index hits 70 today, showing extreme optimism
However, there are signs suggesting the market may soon face a correction. Since Bitcoin breached $118,000 last Friday, the daily relative strength index has shifted into overbought territory. This signal warns that the asset might be overextended in the short term. Adding to this caution is the observation that daily trading volume in the days following the breakout fell below the average of the past four weeks. Such volume patterns often hint at weakening momentum, implying buyers could become exhausted.
Yet, today’s price jump has been accompanied by an increase in trading volume, which partially offsets immediate concerns. This renewed participation has also pushed Binance’s Fear and Greed Index further to 70, indicating a tilt towards extreme greed among market participants. While this sentiment supports bullish continuation, it can also foreshadow heightened volatility if profit-taking intensifies.
Looking at support levels, $120,000 is set to act as a critical near-term floor, serving as a buffer zone in case of a pullback. Below that, the previous week’s high at $118,300 provides an additional cushion against deeper corrections. Although the long-term outlook remains constructive given supportive macro factors, the short-term technical picture indicates potential for a temporary cool-off before further upside.
Bitcoin price rallied as rising volume and open interest showed strong market commitment. RSI climbed above 70 after the price hit $118,100, suggesting a near-term pullback.
