Cryptocurrency investment products have sparked a frenzy for capital. According to statistics from digital asset management company CoinShares, global cryptocurrency funds saw a net inflow of $4.39 billion last week, surpassing the previous record of $4.27 billion set after the U.S. elections in December last year, and setting a new historical high.
** This week marks the 14th consecutive week of net inflows, indicating that investor interest in cryptocurrency funds continues to grow. Year-to-date, the cumulative inflow has reached $27 billion, driving the total assets under management of global cryptocurrency investment products to a new historical high of $220 billion.**
** Last week, the main inflow was still led by Bitcoin, attracting $2.2 billion, slightly down from $2.7 billion the previous week. However, stealing the spotlight was Ethereum, the second-largest cryptocurrency by market capitalization.**
** Ethereum-related investment products have recorded net inflows for the 13th consecutive week, with last week’s inflow reaching $2.12 billion, not only setting a new weekly high but also nearly doubling the previous week’s $1.2 billion. This has pushed the cumulative inflow for the year to $6.2 billion, surpassing the total for the entire year of 2024.**
** In contrast, Bitcoin’s market share fell by 5.8% in a single week to below 61%, marking the largest weekly decline since June 2022 and reaching its lowest level since March this year. With the rapid expansion of cryptocurrency market capitalization, the total market cap has risen from $3 trillion to $3.8 trillion over the past three weeks, with Ethereum leading this surge, as competing coins are gradually replacing Bitcoin as the focal point of market capital.**
** As Bitcoin hovers below $120,000, its positive correlation with other cryptocurrencies has also weakened. Such a trend often signals that market volatility is about to increase and may lead to the liquidation of key positions. As of the time of writing, Bitcoin is priced at $117,199, down about 0.94% in the last 24 hours.**
** Ethereum, on the other hand, is climbing steadily, creating a stir in the market. Some cheer for this, while others watch helplessly as their short positions approach liquidation. Currently, there is an oversupply of short positions in the market; if Ethereum successfully breaks through the psychological barrier of $4,000, it is expected to trigger a liquidation wave of nearly $331 million in short positions, further strengthening Ethereum’s upward momentum. As of the time of writing, Ethereum is priced at approximately $3,743, up about 3.5% in the last 24 hours.**
** Bitcoin Four-Hour Chart**
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** The current price is running near the middle band of the Bollinger Bands, which is showing a horizontal extension, indicating that the market is in a consolidation phase. The distance between the upper and lower bands is gradually narrowing, suggesting that market volatility continues to decrease and may be building up for a breakout. In the MACD indicator, the DIF line and DEA line are nearly overlapping, and the MACD histogram is green and continuously shortening near the zero axis, indicating that the bullish and bearish forces are temporarily in a relatively balanced state. In the KDJ indicator, both the K and D lines are operating around 50, while the J line has fallen to around 34, showing an overall weak oscillation characteristic.**
** Key Fibonacci retracement levels indicate that the 61.8% level at 119,038 constitutes resistance above, while the 50% level around 118,439 forms a battleground for bulls and bears, and the 38.2% level at 117,843 may provide short-term support. If the price breaks below the 23.6% level at 116,443, it may trigger a deeper correction. The four-hour chart for BTC shows a clear downward trend line continuously suppressing the price movement; if it cannot effectively break through this trend line, the price may continue to test the support around 116,000.**
** In summary, it is essential to closely monitor the price’s breakout situation concerning the upper and lower Bollinger Bands. If the price breaks below the lower band and the MACD forms a death cross, it may trigger further declines. Conversely, if the price breaks above the upper band and the MACD forms a golden cross, a rebound may be expected. If the KDJ indicator forms a death cross pointing downward, it will strengthen short-term correction pressure; if a golden cross pointing upward occurs, it may drive the price to test the resistance above.**
** Based on the above analysis, the following suggestions are provided for reference:**
** Suggestion 1: Go long on Bitcoin if it retraces to 115,700-116,000, with a stop loss at 115,000 and a take profit at 119,000.**
** Suggestion 2: Go short on Bitcoin if it rebounds to 118,500-119,000, with a stop loss at 119,200 and a take profit at 116,000.**
** Instead of giving you a 100% accurate suggestion, I prefer to provide you with the right mindset and trend. After all, teaching someone to fish is better than giving them a fish; a suggestion may earn you temporarily, but learning the mindset can earn you for a lifetime! What matters is the mindset, grasping the trend, planning the market layout and position. What I can do is use my practical experience to help you, guiding your investment decisions and management in the right direction.**
** Time of writing: (2025-07-22, 02:50)**
** (Article by: Master Coin)**
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