Cryptocurrency investment products have sparked a frenzy of capital inflow. 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 reaching a historical high.

This week marks the 14th consecutive week of recorded net inflows, indicating that investor interest in cryptocurrency funds continues to rise. Since the beginning of the year, the cumulative inflow has reached $27 billion, driving the overall managed asset scale of global cryptocurrency investment products to a new historical high of $220 billion.

Last week, the main inflow of funds was still led by Bitcoin, attracting $2.2 billion, slightly down from $2.7 billion the previous week. However, stealing the spotlight is Ethereum, the second-largest cryptocurrency by market capitalization.

Ethereum-related investment products have recorded net inflows for 13 consecutive weeks, with last week's inflow reaching $2.12 billion, not only setting a new weekly record 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 all 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 also reaching its lowest level since March of 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 core focus 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 approximately 0.94% in the last 24 hours.

Ethereum, on the other hand, is climbing steadily, creating waves in the market. Some are cheering for this, while others are anxiously watching their short positions approach liquidation levels. Currently, the market is flooded with short positions, and 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

The current price is operating 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, possibly accumulating momentum for a breakout. In the MACD indicator, the DIF line and DEA line are almost 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, 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 falls below the 23.6% level at 116,443, it may trigger a deeper correction. The four-hour chart of BTC shows a clear downward trend line continuously suppressing the price movement. If this trend line cannot be effectively broken, 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 falls 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 downwards, it will strengthen short-term correction pressure; if a golden cross pointing upwards occurs, it may drive the price to test the upper resistance.

Based on the above analysis, the following suggestions are provided for reference:

Suggestion 1: Buy Bitcoin on a pullback to 115,700-116,000, with a stop loss at 115,000 and a take profit at 119,000.

Suggestion 2: Short Bitcoin on a rebound 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 fish. Suggestions may earn you a moment, but learning the mindset will help you earn for a lifetime! The focus is on the mindset, grasping the trend, and planning positions. What I can do is use my practical experience to help you make investment decisions and manage operations in the right direction.

Time of writing: (2025-07-22, 02:50)

(Written by - Daxian Says Coin) Disclaimer: Online publication has delays, and the above suggestions are for reference only. The author is dedicated to research and analysis in the fields of Bitcoin, Ethereum, altcoins, forex, stocks, etc., and has been involved in the financial market for many years, possessing rich practical experience. Investment carries risks, and caution is advised when entering the market. For more real-time market analysis, please follow the official account Daxian Says Coin for discussion and exchange.

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