QCP Capital: If BTC pulls back to around $110,000, it may solidify the foundation for this round of upward momentum
According to QCP Capital's latest analysis, Bitcoin triggered profit-taking after breaking through $120,000, while temporarily suppressing its upward momentum. However, the buying power around $114,000 has re-supported its local price bottom.
The institution believes that if Bitcoin pulls back to around $110,000, this resistance level may inject stronger rebound momentum into the current round of upward trends.
Meanwhile, with the summer vacation approaching, trading volumes in traditional financial markets are experiencing seasonal slowdowns. Especially considering that the stock market seems to be responding mildly to adverse factors such as increased tariffs and new threats targeting countries purchasing Russian oil.
It is worth noting that the U.S. stock market has also stagnated since early July, and this sideways or volatile trend may indicate insufficient upward momentum. The recent rise of the S&P 500 index has mainly been driven by tech giant Nvidia, which has continuously refreshed its historical records since July.
On a global macro level, the U.S. dollar index (DXY) has fallen 10% this year, which objectively has boosted the performance of dollar-denominated assets (including some U.S. stocks, gold, and Bitcoin).
It is worth mentioning that after nearly half a year of weak adjustment in the dollar index, the actual prices of some U.S. stock assets are still below their highs from last year.
However, although the overall trend of the dollar index appears to be declining in the short term, there is also the possibility of a sudden significant increase, which could trigger a pullback in risk assets.
In addition, the U.S. inflation rate remains around 2.5%, making the market more susceptible to external price shocks. Although the Federal Reserve has signaled a possible policy shift, the relatively stagnant inflation rate adds uncertainty to the timing of policy adjustments.
In summary, QCP Capital maintains a structurally bullish stance on Bitcoin. It also points out that thanks to the U.S. Treasury's efforts in fiscal diversification on SBET and an increasing number of companies buying Ethereum, Ethereum is currently showing a relatively strong market trend.
