Bitcoin Price Likely Headed to $120K as Momentum Builds Up

Highlights:

• Bitcoin has breached short-term resistance at $115,507
• Rally puts Bitcoin on course to hit $120k soon
• A risk-on sentiment across the markets could sustain Bitcoin momentum 

Bitcoin (BTC) is slightly green today, up by 0.89% to trade at $115,043.01. However, this negligible price action indicates that bulls are yet to retake the market fully. It shows that investors are still cautious about Bitcoin. This can be linked to ongoing macro uncertainties. The drivers of this uncertainty are the ongoing tariff issues between the US and some of its trading partners, such as Canada and India. 

However, despite the weak price action at the time, Bitcoin holders are not selling their Bitcoin. This is evident in that Bitcoin trading volumes in the last 24 hours have dropped by 7.5% to $54.36 billion. It shows that the average investor has a long-term view of Bitcoin and does not care much about intraday price movements. 

Institutional Ownership of Bitcoin On the Rise

The move towards long-term ownership of Bitcoin is evident in the fact that institutional ownership of Bitcoin is on the rise. More companies are following the Strategy’s steps to accumulate Bitcoin in their balance sheets. For instance, Vaultz Capital recently bought 47.85 Bitcoin, bringing their total Bitcoin holdings to 117.85 BTC.

At the same time, many other institutions are adding their Bitcoin holdings through ETFs. All this means that demand is growing steadily and chasing the fixed supply of Bitcoin that is capped at only 21 million tokens. As this demand continues to outstrip supply, the odds are high that Bitcoin could be headed for a significant price rally in the short to medium term.

🇬🇧 Vaultz Capital adds 48 $BTC (~£4.2M) to its treasury, bringing total holdings to over 100 BTC.

Positioning Bitcoin as a strategic asset. 📈#MetFiDAO #BTC #Bitcoin #crypto #blockchain #defihttps://t.co/defEMt1E1q pic.twitter.com/n3hH8FR3Dc

— MetFi DAO (we're hiring) (@MetFi_DAO) August 6, 2025

Bitcoin Adoption In DeFi Opening New Use Cases

Besides the rising demand through ETFs, innovation is rising in the Bitcoin network. Many innovators are now working to unlock Bitcoin smart contracts, a factor that could trigger a rally in the Bitcoin price going into the future. For instance, an organization known as Babylon has started trustless Bitcoin vaults, which will introduce smart contracts on the Bitcoin network.

Bitcoin DeFi is already taking shape. BTCFi now has a suit that is changing Bitcoin from only a store of value to a dynamic protocol that can take on the many other DeFi platforms in the market. For context on how fast Bitcoin DeFi is growing, platforms like Babylon and Lombard now have more than $4.9 billion in Bitcoin TVL. This number is only set to go higher as investors get the chance to do Bitcoin staking and other yield-earning actions while earning in the world’s largest, most trusted cryptocurrency.

Lombard finance exponential run needs to studied 😄@Lombard_Finance has been on an explosive run.

TVL grew exponentially compared to a year ago.
over $1.642billion of Total Value Locked

Retails especially now have BTC yield exposure via $LBTC. There's multiple vault options… pic.twitter.com/Zt0TfzchOS

— Tunde_Aare | 📘💧🦍 (@ziddy_aare) August 7, 2025

Risk-On Sentiment Returning to the Market – Good for Bitcoin

Bitcoin also benefits from the fact that risk-on sentiment is returning to the market. This is evident in that major US indices are pushing higher despite all the prevailing issues around tariffs and geopolitics. Such price action shows that big money is flowing into the markets, and investors expect better long-term returns.

Since Bitcoin tends to follow the US stock indices’ trajectory, this could mean new highs are coming. Hopes of a rate cut in September could help sustain this momentum. This would unlock central liquidity in the US markets and could trigger a rally to new highs in the short term. 

Stocks climbed Wednesday as investors digested earnings and a surge in Apple boosted tech.

🔹 S&P 500: +0.7%
🔹 Nasdaq: +1.2%
🔹 Dow: +81 pts (+0.2%) pic.twitter.com/HFEg65WTvl

— Houstonomics (@Houstonomics) August 6, 2025

Technical Analysis – Bitcoin Price Breaches Out of Multi-Day Consolidation

After days of trading between the $115,507 resistance and $112,897 support, Bitcoin has broken out bullish today.

This has put Bitcoin on course to test $120k in the short term. On the other hand, if bulls lose momentum, the most likely scenario is a consolidation around $115,507, which is now support.