Market explosion: Violent surge on the 4-hour level, reaching a new phase high.
At 13:46 today, BTC/USDT was quoted at 121,843 USDT, soaring 3.24% in a single day, with a peak intra-day price of 122,335 USDT, refreshing recent highs! From the candlestick view:
4-hour chart: The middle band of the Bollinger Bands (BOLL) continues to rise (MID=117745), and after the price breaks through the previous high of 120995 (original upper band), it completely opens up upward space, with moving averages in a bullish arrangement, and a strong trending market.
1-hour chart: Straight-line surge breaking through the upper band of the Bollinger Bands (UP=122009), trading volume skyrocketing to $2.229 billion, with net capital inflow exceeding $184 million, bullish momentum dominating the market!
Three core driving forces, dissecting the surge logic.
1. Technical aspect: Breaking through key resistance, trend fully activated.
Previously, BTC fluctuated in the range of 117,000-121,000, with the 4-hour Bollinger Bands middle band providing strong support. Today's violent breakthrough of the key resistance level at 121,000 has attracted technical funds—breakout strategies and trend-following funds are increasing positions, creating a positive feedback loop of 'breakout → following the trend → acceleration.'
2. Capital aspect: $184 million net purchase, institutional 'buying spree' intentions are obvious.
Capital flow exposes the truth: over $180 million net inflow, with trading volume increasing by more than 30%. Combined with market rumors, institutions may be positioning for a 'trending market' (high probability of leveraged funds and hedge funds), coupled with retail FOMO sentiment, collectively pushing prices higher.
3. Expectations: Macro + industry positive resonance (hidden lines fermenting)
Macro hidden lines: Federal Reserve rate cut expectations rise (if August inflation data is weak), the US dollar index weakens, and funds shift from safe-haven assets to BTC and other risk assets;
Industry insight: Continuous increase in Bitcoin spot ETF holdings (institutional long-term allocation demand), coupled with the 'bull market inertia' after the halving in 2024, igniting market expectations for new highs.
Caution! The rise and fall hide risks; these two positions determine life and death.
Although the bullish momentum is fierce, the area around 122,300 has reached short-term resistance (previous high + 1-hour Bollinger Bands upper band), and the price has pulled back to 121,800, caution is advised:
Support level: 121,000 (4-hour Bollinger Bands middle band + breakout pullback level), if maintained, the outlook remains bullish;
Resistance level: 122,300 (previous high + psychological barrier), breaking through aims for 125,000!
If holding positions, you can use 121,000 as a stop-loss to bet on the continuation of the trend; if watching, it’s safer to wait for a pullback to confirm support before entering.
Remember: Behind the violent surge, there are both opportunities and risks! Control your position, don't let FOMO cloud your judgment!