After another ten days of fluctuations, Bitcoin has once again broken through its previous high this morning. The success of this rally can largely be attributed to the positive CPI data and the increasing speculation around interest rate cuts. Last night, U.S. Treasury Secretary Yellen publicly urged the Federal Reserve to consider a compensatory rate cut of 150 or 170 basis points in September. In her remarks, it was no longer a question of whether there would be a rate cut in September, but rather how much the cut would be. Clearly, this statement has been interpreted by market investors as yet another authoritative confirmation that a rate cut in September is inevitable. Coupled with supportive data, market enthusiasm was instantly ignited, leading both the U.S. stock market and Bitcoin to set new highs last night.

The daily K-line chart showed a large bullish candle yesterday, successfully standing above 120,000. Once the daily K-line stabilizes above this level, new highs are likely to follow. However, the resistance from the previous highs between 123,000 and 124,000 remains very strong. In fact, the trading volume over the past ten days has been quite mediocre, even below usual levels, as recent funds have been flowing into Ethereum. Over the past ten days, Ethereum has seen an increase of nearly 30%, driven by substantial capital accumulation, primarily due to institutions being optimistic about Ethereum's potential for growth. It can be seen that the spot buying for Ethereum has been doubling Bitcoin's volume in recent days, with billions flowing in. A significant retracement is highly unlikely, including our Ethereum position that we entered at 3850, which is currently held and has gained nearly 1000 points. The target for this wave is to see Ethereum break its previous high, which is now less than 100 points away. During this period, we will gradually reduce our positions, as the RSI has already entered the overbought zone, coupled with the consensus pressure from previous highs and short-term profit-taking, indicating that a pullback is inevitable.

In the short term, the psychological level of 120,000 for Bitcoin has formed a support-resistance conversion. From a higher timeframe perspective, there are signs of a breakout from a converging triangle. If Ethereum breaks its historical high first, we need to pay attention to the outflow of profit-taking back into Bitcoin. The anticipated interest rate cut in September is approaching, and I personally believe that regardless of whether it's Bitcoin or Ethereum, there will certainly be a pullback before the rate cut is officially implemented. The extent of the pullback remains to be seen, but it won't be very deep, nor will it allow everyone to react in time. #以太坊创历史新高倒计时 $BTC