Analysis: If Bitcoin rebounds to the $110000 attachment, it may provide a more stable foundation for consolidating the current uptrend

Singapore based cryptocurrency investment firm QCP Capital announced in a statement that Bitcoin's upward trend came to a halt after breaking through $120000, and profit taking funds suppressed its upward momentum. Eventually, it found a local bottom at $114000, with buying interest emerging to support the price. As summer vacation approaches, the trading volume in traditional financial markets is seasonally slowing down. The US stock market has been stagnant since early July, and the sideways trend may be a signal of weak upward momentum. Moreover, the stock market remains indifferent to unfavorable factors such as the increase in basic tariffs and new threats from countries that purchase Russian oil. It is worth noting that the recent rise of the S&P 500 index is mainly driven by Nvidia, whose stock price continued to hit historic highs in July. The US dollar index has fallen by 10% this year, driving strong performance in US dollar denominated assets. However, after adjustment, the actual price is still lower than the previous high point, and the risk of a significant rebound in the US dollar has increased, which may lead to a pullback in risk assets. The US inflation rate has stagnated at 2.5%, and the market is vulnerable to external shocks. The Fed's interest rate cuts imply uncertainty in the timing of policy shifts. The institution maintains a structural bullish outlook on Bitcoin, and if it rebounds to around $110000, it may provide a more solid foundation for the consolidation of the current uptrend. Ethereum has also shown strong performance due to SBET initiatives and increased holdings by enterprises.