Bitcoin retraces after breaking $120,000; analysts warn against forced selling.
Bitcoin ($BTC) has started to show a correction trend after reaching an all-time high of $123,250.
According to a report from Cointelegraph, trading resource platform Material Indicators warned last night that although there is some buying interest around $120,500, it may be to attract late-entry bulls, followed by a potential support test, reminding investors who entered later not to get trapped.
Material Indicators pointed out:
'If the price approaches $120,500 again, be cautious of the risk of forced selling. Although the peak of this bull market has yet to be reached, Bitcoin should test the support level before sustainably breaking through $130,000.'
Source: X Bitcoin retraces after breaking $120,000; analysts warn against forced selling.
Bitcoin temporarily fell below the short-term support level of $118,800.
(Cointelegraph) An analysis early this morning indicated that, based on CoinGlass liquidity data, Bitcoin's short-term support level is around $118,800, which is about 2% of correction space.
As of the time of writing today, Bitcoin has fallen from a recent high near $123,000, with a current price of $117,920, just below the mentioned short-term support level. It remains to be seen whether it will rebound or continue to decline.
Cryptocurrency trader CrypNuevo also reminded: 'We need to be wary of more market manipulation; the recent market movements may also be part of the weekly routine of forced selling. Caution is advised.'
CoinGlass data shows that the liquidation volume in the global cryptocurrency perpetual contract market in the last 24 hours was $843 million, with shorts (sell orders) liquidating $549 million, indicating a technical correction demand.
Further reading:
Losses exceeding $360 million! A mysterious trader liquidated eight times in a week, analyzing his operations for lessons learned.
QCP: FOMO hasn't arrived yet, but suggests positioning during pullbacks.
Although Bitcoin faces technical correction pressure in the short term, institutions remain optimistic about the long-term outlook.
Cryptocurrency trading company QCP Capital stated that the market currently lacks typical signs of 'fear of missing out' (FOMO), which may reflect a maturing market dynamic.
The company maintains a structurally bullish view on Bitcoin, as institutional funds continue to flow in, and the overall economy still brings positive factors, all of which are key to supporting Bitcoin prices.
However, QCP Capital also advised caution at the current price levels and expressed a preference for positioning during pullbacks rather than chasing prices higher.
The company believes that professional investors may wish to hedge against short-term volatility while maintaining a long-term bullish outlook.
The reasons for investors leaning towards hedging are understandable, as tonight (July 15) at 20:30, the U.S. government will announce the June Consumer Price Index (CPI), and a series of public companies' 'super earnings week' is approaching. In the cryptocurrency space, the U.S. House of Representatives' 'Cryptocurrency Week' has officially begun, and the three key cryptocurrency bills are under close scrutiny for whether they will be reviewed and passed.
Further reading:
U.S. House of Representatives 'Crypto Week' starts on July 14! What are the three major cryptocurrency bills? Will they pass?
Democrats launch anti-crypto corruption week! Countering Congress's crypto week, will there be variables in the stablecoin bill?
This content is generated by aggregating information from various sources by Crypto Agent and reviewed by Crypto City. It is still in the training stage, and there may be logical biases or information inaccuracies. The content is for reference only and should not be considered investment advice.
'Will Bitcoin rise again? Analyst: Focus on this support level before pushing towards $130,000, don't get trapped!' This article was first published in 'Crypto City.'
