The cryptocurrency markets experienced a tumultuous week, with Bitcoin hitting a new historical peak of $124,515 before quickly retreating to around $118,350. While investors continue to track the impact of U.S. economic data and monetary policy expectations, expert analyses reveal that the picture is much bigger than just momentary numbers. The platform offers an in-depth reading of fundamental and technical trends to help traders make informed decisions amid sharp fluctuations.
**Historical peak followed by a correction storm**
Bitcoin's strong rise to a new record level was driven by market optimism regarding ETF fund flows and positive U.S. Consumer Price Index (CPI) data. However, these gains quickly faced pressure with the release of Producer Price Index (PPI) data that came in higher than expected, causing a sharp drop of over 4% within minutes, amid liquidation of leveraged positions exceeding a billion dollars in less than 24 hours.
Despite this correction, experts believe that the movement does not represent a fundamental reversal in the long-term bullish trend, but rather a 'healthy release' after an excessive upward wave.
**Record trading volumes and ongoing dominance**
Current market cap: $2.35 trillion (after touching $2.5 trillion at peak)
Daily trading volume: $46.62 billion
Bitcoin Market Dominance: 58.7%
Data indicates that these figures reflect Bitcoin's continued dominance as a key asset attracting global liquidity, especially amid recent waning confidence in some alternative currencies (Altcoins). The platform also clarifies that the increase in dominance reflects a 'strategic shift of investors towards relatively safer digital assets'.
Performance Indicators: Strong momentum interspersed with short-term fatigue
Daily Change: +0.5%
Weekly Change: +0.1%
Monthly Change: -1.9%
Change over 90 days: +14.9%
According to Bitcoin indicators, short-term movement tends to be neutral after a profit-taking wave at the peak, while the long-term trend remains strongly bullish, supported by increasing institutional liquidity and expectations of a near-term reduction in U.S. interest rates.
Current market drivers
Uncertainty in U.S. monetary policy and fluctuating expectations for interest rate cuts.
Widespread liquidation of long leveraged positions.
Anticipation of U.S. Treasury Department trends regarding digital reserves, despite recently excluding the option to purchase Bitcoin directly.
Through AI algorithms, it is clear that Bitcoin's critical support levels are centered around $115,000, while the range of $124,000 – $125,000 poses significant resistance in the short term. However, institutional liquidity patterns indicate that large investors are ready to buy at any dip, enhancing the likelihood of a continued upward trend in the coming quarter.