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Recently, Bitcoin has shown a steady pump trend driven by favourable information, successfully breaking through the important psychological barrier of $120,000. Currently, the Bitcoin price is undergoing narrow fluctuations around $120,000.
From a technical perspective, the daily level has completed a technical repair of the previous decline. The MACD indicator has formed a golden cross, accompanied by a moderate increase in trading volume, indicating that there is still upward momentum in the short term. However, due to insufficient buying power, coupled with market funds being diverted to other popular cryptocurrencies, Bitcoin's upside potential is temporarily limited.
Market participants should focus on the effectiveness of the $120,000 support level. If Bitcoin can firmly hold this price point, it is expected to continue its rebound trend in the future. However, investors also need to remain cautious and pay attention to the potential risk of a pullback.
In the short term, $119,500 may become an important support level, while $121,000 could be the next significant resistance level. If it breaks through $121,000, Bitcoin may experience further rise. However, considering the current market environment, investors should remain vigilant, closely monitor market changes, and adjust their investment strategies in a timely manner.