Viewpoint: Bitcoin is still likely to hit new highs in the medium term, but we need to be wary of short-term momentum exhaustion

Singapore-based crypto investment firm QCP Capital stated in a statement that Bitcoin remains firmly locked in a narrow range, struggling to break through the $120,000 mark, while sustained buying interest around $116,000 continues to provide support. Ethereum's upward momentum appears to be waning as it approaches the psychological resistance level of $4,000, with momentum indicators becoming increasingly neutral. From a structural perspective, continued institutional inflows and favorable regulatory developments suggest that Bitcoin remains likely to reach new highs in the medium term. Institutional investors such as Strategy and SharpLink Gaming are continuously raising funds to purchase Bitcoin, highlighting their long-term confidence in the asset. However, caution remains warranted. Price action has failed to materially respond to a series of positive news, including the passage of pro-cryptocurrency regulations in the United States and positive developments in spot and derivatives ETFs. Historically, market stagnation amidst a flurry of positive news often signals a weakening of short-term momentum. The lack of follow-through on positive news is a typical late-cycle market symptom.