Recently, the cryptocurrency market has seen increased volatility, and after a high-level pullback, Bitcoin ( BTC ) has entered a consolidation phase. Currently, the trading price of BTC is approximately $119,660, and the bullish-bearish trend index is at a neutral weak level of 52/100.

In the short term, although the BTC price has shown a slight rebound, the upward momentum has not fully recovered. The market focus is concentrated on the key resistance range of $120,000 to $120,500. If it cannot break through this range and trading volume does not significantly increase, BTC may continue to consolidate sideways. On the other hand, if it falls below the support level of $119,000, it may face adjustment pressure in the short term.

Technical analysis shows that the BTC trend is weak in the short term, and the MACD indicator has not shown any clear breakthrough signals. However, the medium to long-term trend remains robust, with the price positioned above the MA25 on the daily chart, and the weekly chart displaying a bullish arrangement. The RSI indicator has retreated to near the midline in the short term, but the support above the daily level is still effective, indicating that momentum has not completely weakened.

In terms of trading volume, the market remains relatively stable, and there have not been any obvious signs of large-scale capital inflows or outflows. This may indicate that investors are waiting and observing for a clearer market direction.

It is noteworthy that recent positive macro news has emerged in the cryptocurrency market. The daily net inflow of Ethereum-related ETFs has exceeded $1.01 billion, significantly higher than the approximately $178 million for Bitcoin ETFs, reflecting strong investor interest in Ethereum. Additionally, the U.S. policy environment has also seen favorable changes for crypto assets, including allowing traditional 401(k) retirement plans to incorporate crypto assets and lifting restrictions on crypto assets entering 401(k) plans. These policy changes may bring long-term benefits to the cryptocurrency market.

Overall, Bitcoin is currently in a critical technical position, and investors should closely monitor the breakout situation around $120,000 while being wary of potential pullback risks. In the medium to long term, improvements in the policy environment may provide support for Bitcoin and the entire cryptocurrency market.