Bitcoin: New highs are ready to break
In-depth analysis of the Bitcoin market: Breakthrough opportunities under the resonance of fundamentals and technical aspects
I. Overview of the current market situation
As of July 10, 2025, the price of Bitcoin is currently in a high consolidation stage after breaking through $112,000 to set a record high. The highest increase in 24 hours was 3%, and the cumulative increase this year was about 19%, showing a strong upward momentum2. However, market volatility is still significant. The latest data shows that the amount of liquidation in a single day is as high as $510 million, involving more than 100,000 traders2, reminding investors to maintain risk awareness in optimism.
II. Key drivers of fundamentals
1. Improved policy environment
US cryptocurrency regulation is turning to a loose direction. The regulatory roundtable promoted by the new SEC Chairman Paul Atkins is expected to implement new policies in July-August, aiming to define clear regulatory boundaries, reduce law enforcement actions, and promote the United States to become a global crypto asset center2. This policy shift has significantly boosted market confidence and removed some obstacles for institutional funds to enter the market.
2. Institutional funds continue to pour in
The net inflow of spot Bitcoin ETFs in 2025 has reached US$14.4 billion2, indicating that the traditional financial market's acceptance of Bitcoin continues to increase. 135 listed companies such as MicroStrategy have included Bitcoin in their balance sheets2, and corporate-level allocation demand has formed a stable buying support. The recent weaker-than-expected US employment data has strengthened the Fed's expectations of a rate cut in September, further prompting funds to accelerate the inflow of risky assets such as Bitcoin2.
3. Market narrative upgrade
The role of Bitcoin has shifted from "alternative currency" to "reserve asset", and CICC pointed out that its positioning as "digital gold" is widely accepted2. National-level allocation cases are also increasing, such as Pakistan's announcement of the establishment of a strategic Bitcoin reserve2. This narrative shift is reshaping the value assessment framework of Bitcoin.
4. Macroeconomic linkage
The Federal Reserve's monetary policy remains a key variable. Trump's chief adviser recently publicly accused Powell of being the "worst Federal Reserve chairman in history", saying that if interest rates are not cut on July 29, "catastrophic consequences"3 may occur3. At the same time, the US trade policy of imposing a 50% tariff on copper (to be implemented as early as August 1) has exacerbated market uncertainty3. Historical data shows that Bitcoin often performs well in liquidity easing cycles, and the current market's expectations for interest rate cuts are forming potential positives.
III. In-depth analysis of technical aspects
1. Key price structure
After breaking through the horizontal consolidation range, Bitcoin is currently in a high-level accumulation state:
Upper target: The historical high of $112,000 is the recent key psychological resistance, and a new upside space may be opened after breaking through2
Recent support: $110,700 (top and bottom conversion position) constitutes the first line of defense
Trend support: $109,700 (upward trend line) is an important line of defense for bulls
Key defense: There is significant liquidity support in the $108,500 area, and a break below may drop to the $106,000-107,200 support area26
2. Technical indicator signals
Trend indicators: Moving averages of all major time frames (5-day to 200-day) remain in a bullish arrangement, confirming that the overall upward trend remains unchanged4
Momentum indicators: RSI is in the neutral area near 53, not showing overbought; MACD remains positive despite slightly weakened momentum6
Volatility analysis: Bollinger Bands continue to narrow, and EMA on the 4-hour chart converges, which usually indicates that major fluctuations are coming5
Derivatives data: Binance CVD (cumulative volume increment) continues to be negative, indicating that selling pressure exists, but spot buyers successfully defend key support5
3. Main capital movement
The disk shows that $23 million of unfulfilled sell orders are piled up at the $110,000 mark, forming a significant resistance9. At the same time, there is a $17.27 million buy support in the $108,388-108,500 range9, indicating that the long and short sides are fiercely competing in the current area. This large order distribution pattern suggests that the market may test the upper resistance first and then fall back to consolidate.
IV. Operational strategy recommendations
1. Trend trading strategy
Long position layout: Establish long orders in batches in the support area of 110,700-109,700 US dollars, and set the stop loss below 108,500 US dollars
Breakthrough chasing long: If the price stands above 112,000 US dollars, you can add positions, and the target is 114,500 US dollars (potential area for short squeeze)2 and higher
Target setting: Short-term target is 112,000 US dollars, and the medium-term target can be seen to 116,000 US dollars2 or 137,000 US dollars4 according to the volume
2. Reversal trading strategy
Short opportunity: If it falls below $108,500 and then rebounds to $109,700 without breaking, you can try shorting with a light position, and set the stop loss above $110,700
Deep correction: If it falls below the $108,500 support, it may test the $106,000-107,200 area6, and then you can observe the stabilization signal
3. Risk management points
Position control: The risk of a single transaction should be controlled within 2% of the total funds
Leverage use: It is recommended not to exceed 3-5 times leverage in the current high volatility environment
Event sensitive period: Focus on key points such as the Federal Reserve’s interest rate decision on July 29 and the implementation of the tariff policy on August 137
V. Outlook and conclusion
1. Short-term (1-3 months) outlook
Bitcoin is currently in a favorable environment where technical and fundamental resonances occur. If ETF fund inflows continue or the Federal Reserve releases a clear signal of interest rate cuts, the price is expected to test $116,0002. However, we need to be alert that regulatory policies that fail to meet expectations or macroeconomic deterioration may lead to a pullback to the $102,000-105,000 support zone27.
2. Long-term (until 2030) value prospects
Cycle model: According to the peak rule of 550 days after halving, this round of bull market may have a 2-3 month peak window2
Technical target: Long-term rising channel points to $168,500 (Fibonacci extension level)2
Scarcity drive: After the halving in 2030, the supply will further shrink, coupled with the global inflation hedging demand, and the highest is expected to reach $660,4712
3. Summary of investment advice
Bitcoin's breakthrough of $112,000 is the comprehensive result of policy, liquidity and narrative upgrades2. The current technical structure remains bullish, and it is recommended to focus on low-multiple ideas, focusing on the $110,700-109,700 support area. Investors should pay attention to low-friction investment channels such as spot ETFs, avoid high leverage operations, and prepare for potential fluctuations. As the institutionalization process accelerates, Bitcoin is completing the transformation from a marginal asset to a mainstream configuration option. Long-term investors can seize the layout opportunities brought about by every major pullback.
