1. Fundamentals: Three major favorable news trigger a liquidity frenzy in the crypto market

1. The Bank of England is the first to cut interest rates, accelerating the global easing cycle

The Bank of England announced a 25 basis point cut to the benchmark interest rate to 4%, becoming the first major economy to implement a substantial rate cut recently. This action strengthens expectations for global liquidity easing, injecting a boost into risk assets (including cryptocurrencies), especially enhancing market confidence in 'the Federal Reserve cutting rates in September.'

2. US 401(k) pension funds entering the market: $90-550 billion in funding is on the way

Trump officially signed an executive order early this morning, allowing US 401(k) retirement accounts to invest in cryptocurrencies. This policy is considered a 'historic breakthrough':


  • The total scale of US 401(k) accounts has reached $9-11 trillion. Even a mere allocation of 1%-5% to crypto assets would bring in an incremental funding of $90-550 billion;

  • The signal significance far exceeds the funds themselves — Crypto assets have been officially recognized as a 'legitimate long-term allocation tool' for the first time, completely reversing institutional perceptions of them as 'high-risk speculative products.' BTC, as the core asset, will directly benefit.

3. The SEC and Ripple dispute has come to an end, XRP is ruled as non-security

This landmark lawsuit, lasting several years, concluded with a victory for the crypto industry, as XRP was officially recognized as a non-security. This ruling not only brings short-term benefits to XRP and altcoin sentiment but also establishes a 'judicial precedent' for crypto compliance in the US in the medium to long term, likely accelerating the compliance process for more tokens and alleviating institutional entry concerns.

2. BTC Technical Analysis: Favorable news pushes a breakout at $116K, with $120K serving as the bull-bear dividing line

Market explosion and key price points

Stimulated by the dual favorable news (BoE rate cut + pension funds entering the market), BTC violently surged to break through $116K yesterday, closing with a solid bullish candle on the daily chart, with trading volume increasing by 60% compared to the previous day, confirming the dominance of bulls. The current market exhibits the following characteristics:


  • Resistance zone: Stagnation around the $117.5K level, the $118K-$120K range is a previously densely traded area, with obvious selling pressure; a volume breakout is needed to open up the upward space;

  • Support level: $114K has become a strong short-term support (yesterday's breakout retest confirmation + MA5 moving average), as long as this level holds, the bullish structure remains solid.

Short-term trend judgment

The key focus for the next 1-5 days is 'whether it can break through $120K': If the breakthrough is achieved, it will confirm the start of a new round of major upward momentum, targeting the previous high of $122,838; conversely, if it stagnates around $118K again, we need to be wary of the risk of a pullback after the favorable news is priced in.

Daily operational strategy

Focus above on the $117.5K-$118.5K resistance zone; if resistance is encountered, consider shorting; below, watch the $116K-$115K support, after stabilization on a pullback, consider going long with a stop loss at $114K.

3. ETH Technical Analysis: Strong V-shaped reversal leads, but the reversed relationship hides concerns

Breakout patterns and associated risks

ETH also exploded yesterday, with a daily chart showing a V-shaped reversal, quickly recovering the MA7/14 moving averages from the early August low and breaking through the previous high area, with trading volume increasing by 80%, indicating significantly stronger bullish momentum than BTC. The overall structure presents 'breakthrough + continuation' characteristics, but caution is warranted:
Currently, BTC and ETH exhibit a 'reversed relationship' — typically, ETH follows BTC's fluctuations, but yesterday ETH led the rise while BTC stagnated. If this divergence continues, it may weaken the sustainability of the rise, so we need to closely monitor if BTC can keep up.

Support levels and operational plans

Today, focus on two major support zones: $3780-$3800 (MA10 moving average) and $3850-$3880 (yesterday's breakout retest confirmation). If a pullback stabilizes at the support zone, consider entering; if it falls below $3780, be wary of a chain reaction pullback triggered by a retreating sentiment.

4. Altcoins: The Ethereum ecosystem becomes the core battlefield, with four major lines locking in profit opportunities

Under the dual drivers of compliance benefits and Ethereum leading the market, altcoin funds have become noticeably active, but the differentiation has intensified, requiring a close grip on the 'core driving logic' for layout:


  1. L2 leaders: OP, ARB benefit from the heat of the Ethereum ecosystem, with gains exceeding 15% yesterday, and on-chain activity and TVL have increased simultaneously;

  2. RWA compliant track: ONDO, MKR and other asset tokenization projects favored by institutional funds, with significant valuation reconstruction potential under favorable policies;

  3. AI concept: WLD, TAO exploded short-term under event-driven circumstances, focus on technological implementation progress rather than mere sentiment speculation;

  4. Ethereum staking sector: ETHFI, LDO followed ETH's rebound, with an increase in staking yields driving demand growth.


Operational principles: Stay away from weak altcoins with no themes or volume, focus on targets exhibiting 'trend breakthroughs + increased volume' from the main lines above, and engage in quick in-and-out trades without getting attached. Contract users can participate in the 'Fan Yong + free guidance' activity (up to 40%), learning position management skills; the first batch is limited to 50 people, helping to grasp this round of market trends.


Risk warning: Market sentiment is high due to favorable stimuli, but cryptocurrency volatility is severe. The above analysis is only a personal opinion and does not constitute investment advice; strict position control is necessary when entering the market.