On Thursday (July 24), Asia opened trading, and after reaching a historical high of $123,000 last week, Bitcoin is currently consolidating around the $118,000 range. Analysts pointed out that market sentiment is weak, with a risk of a pullback to $115,000; however, on-chain data still supports the continuation of the upward trend.
Meanwhile, Ethereum remains in a strong upward channel, currently priced at $3619, staying above key moving averages. It had previously approached $3800, with $3300 now being a key support level to maintain the bullish structure.
Bitcoin and the entire crypto market have been hot recently, with altcoins like Ethereum and XRP experiencing significant increases over the past few weeks. Thus, bulls are in a temporary consolidation phase.
Most of the top 100 cryptocurrencies by market capitalization closed with 'bearish candles' on Wednesday, beginning to test key resistance levels after a strong surge.
Meanwhile, traditional markets showed mixed performance, with the S&P 500 index slightly up to 6309.62 points, setting a new historical high, while the tech-heavy Nasdaq index fell by 0.39% to 20892.69 points.
Despite this, the sentiment in the crypto market remains generally in the 'greed' zone, with the fear and greed index reading 70, indicating that this round of pullback may just be profit-taking rather than a trend reversal. This is also the highest reading since July 12, showing strong bullish sentiment among recent traders. According to Myriad, a prediction market developed by Dastan, the parent company of Decrypt, most users still believe that Bitcoin has over a 70% chance of rising to $125,000 before dropping to $105,000.
Despite the pullback on Thursday, the fundamentals supporting the rise of crypto assets remain unchanged. JPMorgan's crypto collateral loan program continues to validate Bitcoin and XRP as legitimate collateral. The recently passed (GENIUS Act) provides a legal framework for stablecoin issuers to operate legally, and the industry generally believes this will attract a large influx of Wall Street funds into the crypto market.
China's attitude towards stablecoins has become more urgent.
The People's Bank of China is shifting its stance on stablecoins, beginning to acknowledge their role in the financial system, despite earlier skepticism.
With the U.S. passing the (GENIUS Act), China is under pressure to accelerate the development of its own stablecoins to counter the dollar's dominance in the global financial system. Hong Kong is becoming a key link in China's strategy to promote the internationalization of the RMB using regulated stablecoins.
As stablecoins like Tether's USDT and Circle's USDC integrate into global financial infrastructure, especially in Asia, processes such as supply chain financing have become more efficient than ever. Hence, Beijing's cautious stance on stablecoins is transforming into a sense of urgency. The stablecoin issue has been put back on the agenda because they are seen as tools for further entrenching the dollar's position in the Asian financial system, which is something the Chinese authorities are unwilling to accept.
Evan Ayuang, president of Animoca Group, stated that China's interest in stablecoins has been warming, and as stablecoins move mainstream on Wall Street, this trend is accelerating.
He said: 'Now, stablecoins have returned to the view of policymakers and relevant issuers. The key question is: why? Ultimately, this relates to President Trump's policies... the various signals coming from the U.S. are actually forcing China to accelerate its actions.'
Animoca is a Web3 fund based in Hong Kong, involved in various areas of the crypto industry.
He pointed out that the recently passed (GENIUS Act) by the U.S. provides a federal regulatory framework for fiat-pegged stablecoins for the first time and clarifies their legitimate status in the global financial system.
This is practically equivalent to the extension of 'digital dollar hegemony', a challenge that China cannot ignore.
Ayuang said: 'When China looks at the (GENIUS Act), it views the U.S. as advancing in this area. If the dollar is the dominant reserve currency now... then these stablecoins circulating in the financial system for settling cross-border trade cannot be ignored.'
This sharply contrasts with the People's Bank of China's 2021 white paper, which held the view that 'stablecoins are speculative and unstable', but as Ouyang said, the atmosphere of discussion has changed. Beijing now realizes it must compete in blockchain infrastructure, especially through 'regulated offshore RMB (CNH) stablecoins'. This will make the RMB a more practical international settlement tool.
Bitcoin Technical Analysis: After a lot of gains, it's time to take a break.
The daily chart of Bitcoin shows a predictable pullback after failing to break through the resistance level of $121,000. Closing at $117,763 on Thursday (down 1.87%), this can be seen as consolidation rather than a true reversal. The key point is that even with the pullback, Bitcoin remains well above important support levels, indicating that bulls are merely 'catching their breath'.
From a technical perspective, Bitcoin remains in a healthy consolidation phase within a strong upward trend.
The Average Directional Index (ADX) currently stands at 29, well above the 25 threshold that confirms trend existence. This indicator reflects the strength of price trends rather than direction. Even if prices decline, this reading indicates that the current upward trend remains intact; today's pullback is merely a minor episode within a larger trend. Most of the top 100 cryptocurrencies by market capitalization closed with 'bearish candles' on Wednesday, beginning to test key resistance levels after a strong surge.
Meanwhile, traditional markets showed mixed performance, with the S&P 500 index slightly up to 6309.62 points, setting a new historical high, while the tech-heavy Nasdaq index fell by 0.39% to 20892.69 points.
Despite this, the sentiment in the crypto market remains generally in the 'greed' zone, with the fear and greed index reading 70, indicating that this round of pullback may just be profit-taking rather than a trend reversal. This is also the highest reading since July 12, showing strong bullish sentiment among recent traders. According to Myriad, a prediction market developed by Dastan, the parent company of Decrypt, most users still believe that Bitcoin has over a 70% chance of rising to $125,000 before dropping to $105,000.
Despite the pullback on Thursday, the fundamentals supporting the rise of crypto assets remain unchanged. JPMorgan's crypto collateral loan program continues to validate Bitcoin and XRP as legitimate collateral. The recently passed (GENIUS Act) provides a legal framework for stablecoin issuers to operate legally, and the industry generally believes this will attract a large influx of Wall Street funds into the crypto market.
China's attitude towards stablecoins has become more urgent.
The People's Bank of China is shifting its stance on stablecoins, beginning to acknowledge their role in the financial system, despite earlier skepticism.
With the U.S. passing the (GENIUS Act), China is under pressure to accelerate the development of its own stablecoins to counter the dollar's dominance in the global financial system. Hong Kong is becoming a key link in China's strategy to promote the internationalization of the RMB using regulated stablecoins.
As stablecoins like Tether's USDT and Circle's USDC integrate into global financial infrastructure, especially in Asia, processes such as supply chain financing have become more efficient than ever. Hence, Beijing's cautious stance on stablecoins is transforming into a sense of urgency. The stablecoin issue has been put back on the agenda because they are seen as tools for further entrenching the dollar's position in the Asian financial system, which is something the Chinese authorities are unwilling to accept.
Evan Ayuang, president of Animoca Group, stated that China's interest in stablecoins has been warming, and as stablecoins move mainstream on Wall Street, this trend is accelerating.
He said: 'Now, stablecoins have returned to the view of policymakers and relevant issuers. The key question is: why? Ultimately, this relates to President Trump's policies... the various signals coming from the U.S. are actually forcing China to accelerate its actions.'
Animoca is a Web3 fund based in Hong Kong, involved in various areas of the crypto industry.
He pointed out that the recently passed (GENIUS Act) by the U.S. provides a federal regulatory framework for fiat-pegged stablecoins for the first time and clarifies their legitimate status in the global financial system.
This is practically equivalent to the extension of 'digital dollar hegemony', a challenge that China cannot ignore.
Ayuang said: 'When China looks at the (GENIUS Act), it views the U.S. as advancing in this area. If the dollar is the dominant reserve currency now... then these stablecoins circulating in the financial system for settling cross-border trade cannot be ignored.'
This sharply contrasts with the People's Bank of China's 2021 white paper, which held the view that 'stablecoins are speculative and unstable', but as Ouyang said, the atmosphere of discussion has changed. Beijing now realizes it must compete in blockchain infrastructure, especially through 'regulated offshore RMB (CNH) stablecoins'. This will make the RMB a more practical international settlement tool.
Bitcoin Technical Analysis: After a lot of gains, it's time to take a break.
The daily chart of Bitcoin shows a predictable pullback after failing to break through the resistance level of $121,000. Closing at $117,763 on Thursday (down 1.87%), this can be seen as consolidation rather than a true reversal. The key point is that even with the pullback, Bitcoin remains well above important support levels, indicating that bulls are merely 'catching their breath'.
From a technical perspective, Bitcoin remains in a healthy consolidation phase within a strong upward trend.
The Average Directional Index (ADX) currently stands at 29, well above the 25 threshold that confirms trend existence. This indicator reflects the strength of price trends rather than direction. Even if prices decline, this reading indicates that the current upward trend remains intact; today's pullback is merely a minor episode within a larger trend.
In terms of exponential moving averages, Bitcoin remains above the 50-day EMA ($110,976) and the 200-day EMA ($88,217). This is a typical 'golden cross' arrangement (short-term moving averages above long-term moving averages), and the current price is also above both, indicating this is a pullback within a strong trend. The significant 'buffer zone' between price and moving averages also enhances the confidence of the bulls.
The Relative Strength Index (RSI) currently stands at 60, indicating that the pullback has not yet entered the 'oversold' zone. The RSI measures the rate and magnitude of price changes. Above 70 indicates 'overbought', often signaling an impending pullback; below 30 indicates 'oversold', suggesting a potential rebound. The current reading suggests that even if prices continue to decline, it does not signify the end of the overall bullish trend; $112,000 remains a relatively solid support level.
The Squeeze Momentum Indicator shows slightly bearish momentum on the daily chart, consistent with Thursday's bearish candle. This may suggest that the price is entering a 'squeeze phase', where the upward momentum stagnates and accumulates energy for a correction. However, this indicator alone is not conclusive.
Key technical levels:
Recent support: $115,000 (psychological level); strong support: $112,000 (price support, psychological level close to the 50-day EMA)
Recent resistance: $121,000 (recent high); strong resistance: $123,091 (historical high)
In summary, the current pullback feels more like a 'technical adjustment' after many gains, rather than the start of a reversal. Fundamentals, technicals, and market sentiment all support the unchanged bullish trend for Bitcoin in the medium term.
