Bitcoin has gone completely crazy today! The price shot up to $122,000, just 1% away from its all-time high. The worst hit are the shorts, with $50 million liquidated in the past hour; this scene can only be described as a 'short massacre'.
The technical aspects have fully erupted, with a strong breakout from a long-term consolidation zone, and the surge in trading volume confirms the validity of the breakout. Although the RSI indicates overbought conditions, in such a strong market, overbought can last a long time. Those who understand know that bull markets don’t signal tops.
The catalyst for the explosive surge was the White House's release of a pro-crypto executive order, marking a fundamental policy shift. The U.S. government's attitude has turned 180 degrees from strict defense to active embrace, instantly boosting market confidence.
Institutional funds are pouring in crazily. The U.S. Bitcoin spot ETF has seen net inflows for three consecutive days, totaling over $1.5 billion. This is not small retail trading, but real large institutional money entering the market. Their buying is more rational and sustained, providing solid support for the price.
The global macro environment is also a driving force. Inflationary pressures persist, traditional monetary policy is failing, and the dollar's hegemony is being challenged. Bitcoin's value as 'digital gold' is increasingly recognized. In this context, Bitcoin has become the best safe-haven asset.
However, one must remain clear-headed; the price is already very high. Historical experience tells us that approaching new highs often faces significant selling pressure. Early investors may take profits, and the technicals also need to adjust and digest. While the long-term outlook is positive, short-term risks cannot be ignored.
The key is whether it can break the historical high next. The policy environment has improved, institutional funds are in place, and the technicals are cooperating; everything is ready except for the east wind. The market strength displayed by this short liquidation has injected strong confidence for a breakthrough. Whether history can be made depends on these few days.