Bitcoin breaks through $110,000 but faces resistance, experts warn of possible sideways movement or fall in the short term.

Market Overview

Recently, the large-scale tax cut bill introduced by the U.S. government passed in the House of Representatives and is expected to be officially signed on July 5. Although the bill may lead to an increase in U.S. debt and some people losing their health insurance, strong employment data supports its implementation. The addition of 147,000 jobs in June and a decrease in the unemployment rate to 4.1% exceeded expectations, prompting the market to adjust its expectations for a Federal Reserve rate cut.

However, some analysts are cautious about the economic outlook. There is a view that job growth mainly relies on government hiring, and the labor participation rate remains weak. At the same time, the government plans to start sending tariff notices to several countries on July 4, which may impact international trade.

Against this backdrop, the regulatory process in the cryptocurrency industry is accelerating. A well-known stablecoin issuer has applied for a national trust bank license in the United States, which is seen as an important milestone for the industry's development. If approved, it will help promote the standardization and compliance of the stablecoin market, attracting more institutions to participate.

Bitcoin market analysis

The price of Bitcoin recently approached $110,000 but failed to break through this key psychological level. Nevertheless, several analysts remain optimistic about Bitcoin's medium- to long-term prospects. Some predictions suggest that, driven by factors such as the inflow of funds into spot ETFs, uncertainty in monetary policy, and a decrease in exchange supply, Bitcoin could reach $116,000 by the end of the year. More optimistic forecasts even set a target price of $170,000.

However, Bitcoin faces some challenges in the short term. There are a large number of sell orders around $112,000, forming a strong resistance. Technical analysis shows that there is bearish divergence in multiple time frames. A well-known figure in the industry warned that new U.S. policies could lead to a short-term contraction in dollar liquidity, and the price of Bitcoin may retreat to the range of $90,000 to $95,000. He expects that the market may trade sideways or slightly fall before the speech by the Federal Reserve Chairman at the end of August.

Altcoin market trends

The altcoin market has shown mixed performance recently. While most tokens are still falling, there are also some standout projects. For example, a token named PENGU saw a nearly 80% increase over the week. Several tokens in the Solana ecosystem have also experienced significant gains, with one project related to feng shui rising over 800% within 24 hours. Moreover, some projects supported by well-known institutions or individuals have also attracted market attention.

Market Data Overview

As of July 4th, 12:00 HKT:

• Bitcoin price: $109,188, year-to-date increase of 16.61%
• Ethereum price: $2,579.71, year-to-date fall of 22.81%
• Market Sentiment: Fear & Greed Index 73, in the Greed Zone
• Market Cap Share: Bitcoin 64.5%, Ethereum 9.2%
• 24-hour liquidation amount: 193 million USD

Future Outlook

Although the market may face fluctuations in the short term, most analysts remain optimistic about the long-term prospects of cryptocurrencies. As the regulatory environment becomes clearer and institutional participation increases, the market is expected to welcome new growth opportunities in the future. Investors should closely monitor changes in global economic policies, regulatory trends, and technological innovations in the industry, and assess risks and opportunities rationally.