What to Know:

• BTC targets $120,000, while XRP is indecisive and Dogecoin shows bullish potential.
• The S&P 500 E-Mini futures exhibit a rising wedge, warning of a potential bull trap for risk assets, including cryptocurrencies.
• Negative bias in BTC and ETH options indicates a risk of downside protection ahead of inflation reports.

Daily Analysis by CoinDesk Analyst and Chartered Market Technician Omkar Godbole.

Major cryptocurrencies are showing optimistic trends, with Bitcoin (BTC) demonstrating a classic inverse head-and-shoulders breakout, potentially pushing it toward $120,000.

“When a rising wedge, which is a bearish reversal pattern, appears after an extended rally to record highs, it significantly increases the probability of a sharp downside move.”

• Translation: This indicates that buyers may be fatigued and the rally could be nearing an end, suggesting a major trend reversal might be on the horizon.

Cryptocurrencies have a tendency to follow Wall Street sentiment closely, meaning that a decline in the S&P 500 could negatively impact Bitcoin and others.

Inflation Insights

A rise in U.S. consumer price index (CPI) could sharply impact the S&P 500’s trajectory. The forecast for August 2025 is a 2.9% annual increase, potentially stressing equities and cryptocurrencies alike. If the core CPI also exceeds expectations, particularly when combined with recent weakness in the labor market, fears of stagflation could arise.

BTC and ETH Options Show Bearish Bias

Analysis shows that there is a negative bias in BTC due to institutional hedges, pushing short and near-dated puts above calls. This trend reinforces the cautious market sentiment as traders proceed into an uncertain inflation landscape.