Bitcoin breaks through the 120,000 USD mark, setting a new historical high

The price of Bitcoin (BTC) strongly broke through the $120,000 mark on July 14, setting a new historical high. During this round of increase, active funds in the market and incremental funds outside the market formed a dual resonance, breaking through the long-term consolidation range, and the market's bullish sentiment has significantly intensified.

Breaking through the key range, capital and policy resonance drive the market to continue rising

This week, Bitcoin has risen by a cumulative 9.08%, not only reaching a historical high and breaking through the $120,000 barrier, but also breaking through the consolidation range of $90,000 to $110,000 that has formed since November of last year. On-chain data shows that over 30% of Bitcoin has been transferred within this range, which has long been regarded as a dense area for institutional accumulation and a pricing anchor for policy expectations.

This breakthrough not only has technical significance but also establishes a market consensus on the macro level that Bitcoin is gradually becoming a strategic asset for the United States. Especially against the backdrop of Trump repeatedly publicly expressing support for Bitcoin and advocating for the establishment of a national-level Bitcoin reserve, this price range has evolved into a symbol of policy signaling. Once this area is effectively breached, it means that the market structure has entered a new upward phase.

Institutional allocation continues to strengthen, ETF and mainstream assets resonate and evolve

The core driving force of this market round comes from deep changes in the funding structure. On the exchange side, the frequency of large transactions has significantly increased, the proportion of long-term holders continues to rise, the chip locking effect has strengthened, and market selling pressure has significantly eased. At the same time, ETF funds continue to see net inflows, providing solid off-market support for the market. According to public data, as of now, the net inflow related to Bitcoin ETFs has reached 1.44 billion dollars this month, with the overall management scale surpassing 51 billion dollars, becoming an important driving force for price stability.

The maturity of the ETF channels has also led to the gradual entry of traditional institutional funds. Long-term funds, including pensions and mutual funds, are allocating Bitcoin through compliant channels, further enhancing the structural stability of the market, reducing volatility, and broadening the mainstream acceptance of assets.

The technical structure is robust, the trend continuation is strong, and short-term fluctuations are controllable.

Since breaking through the $100,000 level, the overall trend of Bitcoin has remained strong. After the $110,000 level was broken with increased volume, the $120,000 level was also conquered due to the sustained increase in trading volume, demonstrating the persistence of the bullish dominance. Currently, although the Relative Strength Index (RSI) is at a relatively high level, there are no obvious overbought signals, and the moving average system is clearly arranged, indicating that the overall technical structure still supports an upward trend.

In the short term, the market may still experience a pullback, especially with attention needed on some funds taking profit, as well as uncertainties brought about by geopolitical conflicts, Federal Reserve policy expectations, and the U.S. elections. Against this backdrop, it is recommended that investors maintain flexibility in their positions, manage risks appropriately, while continuously monitoring the mid-term trends to either sustain or adjust their pace.

Future Outlook: Regulation Accelerates, Market Continues with a More Solid Foundation

Looking ahead to the market, as the pace of policy advancement accelerates, the foundation for the market's continued strength becomes increasingly solid. The ongoing "U.S. Cryptocurrency Week" has become an important window for policy implementation. Three key bills, including stablecoin regulation, division of regulatory functions, and restrictions on Central Bank Digital Currency (CBDC), have entered the review stage in the House of Representatives and are expected to complete voting within this week. Previously, the "GENIUS Act" was passed with a high vote in the Senate, clarifying the 1:1 reserve requirement for stablecoins and federal audit requirements, providing important support for institutional capital inflow and payment scenario expansion.

The substantial progress in policy advancement has provided clear institutional support for Bitcoin to break through 120,000 USD, further boosting the market's confidence in the path to compliance and mainstream acceptance. The current market situation represents not only a technical breakthrough but also a concentrated reflection of global capital repricing the long-term value of crypto assets.

In the short term, attention should be paid to the pace of policy implementation and market adjustment fluctuations. However, in the medium to long term, the mainstreaming of crypto assets has shifted from trend assessment to realization phase. The next round of market breakthroughs may come earlier and faster than market expectations.