Bitcoin hits a market capitalization of 4 trillion dollars! BTC's technical aspects and institutional buying support a bullish outlook.

Bitcoin (BTC) traded around $118,500 on Tuesday, which, although lower than last week’s peak of $122,000, has propelled the total market capitalization of global Crypto Assets to surpass $4 trillion for the first time. The recent pump is mainly driven by institutions continuously increasing the position and the influx of ETF funds, with macro and on-chain data also releasing bullish signals.

Institutions and ETFs Push Market Capitalization to New Highs

MicroStrategy (MSTR): Founder Michael Saylor announced an average purchase of 155 BTC at $116,401 each (valued at $18 million), bringing the total holdings to 628,946 coins, which represents about 3% of the Bitcoin supply, with a market capitalization of approximately $46 billion.

Historical Background: Since initially purchasing 21,454 BTC for $250 million in 2020, the company has increased the position for five consecutive years, with a cumulative pump of nearly 960%.

ETF Momentum: Trump Media updates Bitcoin spot ETF application and reveals a $2 billion BTC holding, accounting for two-thirds of liquid assets. Last week, global Bitcoin spot ETF net inflows totaled $260 million, with U.S. funds contributing $246 million.

Macroeconomic and On-Chain Positive Factors Combined

Macroeconomic Environment: The market expects the Federal Reserve to cut interest rates in September, and a weaker dollar will benefit risk assets. There are rumors that Trump is inclined to appoint Stephen Moore, a supporter of a weak dollar policy, as the new Fed chairman.

On-chain data: Glassnode shows that the total BTC transaction fees rose by 10.3% this week, with daily transfer amounts stabilizing at 8.5 billion USD, indicating that network demand is real and active.

Market sentiment: Ethereum (ETH) has rebounded 190% from the April low, approaching the 2021 high, and its synchronous rise with BTC helps attract more capital into the crypto market.

BTC Technical Analysis

Current Price: 118,515 USD (24-hour decrease 2.12%)

Support levels: $117,350 (trend line), $113,650, $110,675

Resistance level: $119,335–$123,250 (23.6% Fibonacci retracement + previous high)

Technical Indicators:

RSI: 57.9, bullish but not overbought

MACD: Positive histogram, close to bullish crossover

Potential Trend:

Bullish scenario: Break through $123,250 → Target $127,000 and $130,000

Bearish scenario: Break below the trend line → Target 113,650 USD and 110,675 USD

Trading Strategy Recommendations

Bullish Strategy: Wait for the daily close to break above 123,250 USD before entering, with a stop loss set below 117,350 USD.

Bearish strategy: If it breaks below the trendline support, consider setting up short positions during the rebound, with a target of 113,650 USD.

Beginner’s advice: Avoid chasing orders during range fluctuations, wait for a breakout or breakdown confirmation before taking action.

Conclusion

Bitcoin, driven by institutional buying, ETF capital flows, and macroeconomic positives, successfully helped the crypto market capitalization surpass 4 trillion dollars. Although it faces resistance in the short term, both technical and fundamental analyses indicate that the medium to long-term bullish trend remains. Investors should closely monitor the battle between the resistance at 123,250 dollars and the support at 117,350 dollars to capture the next wave of market movements. For more real-time market updates and in-depth analysis, please follow the official Gate platform.