Bitcoin faces short-term resistance at $112,000, market waits for the end of August

Recently, the tax reduction bill promoted by the Trump administration passed in the House of Representatives and is expected to be signed into effect soon. Although the bill may lead to a significant increase in the U.S. debt, the strong employment data in June provides support for its implementation. The non-farm payroll data exceeded expectations, with an addition of 147,000 jobs and the unemployment rate dropping to 4.1%. This data prompted the market to reassess the Federal Reserve's interest rate cut expectations.

However, the Goldman Sachs analyst team holds a different view. They have lowered their predictions for U.S. Treasury yields and insist that the Federal Reserve will continue to cut interest rates in the third quarter of this year. They pointed out that job growth mainly relies on local government hiring, and the labor participation rate remains weak.

Against this background, the Bitcoin market has shown a sensitive reaction. Although Bitcoin surged briefly after the employment data was released, it failed to break through the $110,000 mark. Several analysts remain optimistic about Bitcoin's medium to long-term prospects, expecting the price to potentially reach the range of $116,000 to $170,000 by the end of the year.

However, Bitcoin faces some resistance in the short term. There are a large number of sell orders around $112,000, forming direct resistance. Technical analysis shows that if it cannot break through this level, the support range below is between $106,000 and $107,500. Industry insiders warn that the Trump bill may lead to a short-term contraction in dollar liquidity, or cause Bitcoin prices to pull back to the $90,000 to $95,000 range. It is expected that before the speech by the Federal Reserve Chairman at the end of August, the market may consolidate or decline slightly.

The overall performance of the altcoin market is flat, but certain tokens have shown significant gains. Some tokens related to specific themes have experienced astonishing increases in the past 24 hours, with some projects' market capitalization briefly surpassing tens of millions of dollars.

As of July 4th, 12:00 HKT, the price of Bitcoin is $109,188, with a year-to-date increase of 16.61%. The price of Ethereum is $2,579.71, with a year-to-date decrease of 22.81%. The market fear and greed index is 73, in the greed zone. Bitcoin's market share is 64.5%, while Ethereum's is 9.2%.

In the past 24 hours, a total of 81,349 people globally have been liquidated, with a total liquidation amount reaching 193 million USD. Among them, the liquidation amount for Bitcoin is 52.6963 million USD, and for Ethereum, it is 42.6473 million USD.

As of July 3, the net inflow for Bitcoin ETF is $602 million, and the net inflow for Ethereum ETF is $149 million.

It is worth noting that there has been a noticeable flow of funds from certain large institutions and individual investors recently. Analysis shows that a certain investment institution has sold over $242 million of a certain token but still holds approximately $63.9 million. Additionally, early large holders have deposited a significant amount of Ethereum into trading platforms.

Overall, although Bitcoin faces resistance in the short term, the market remains optimistic about its long-term prospects. Investors should closely monitor the Federal Reserve's policy signals at the end of August, as they may have a significant impact on the cryptocurrency market.