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The crypto assets market is experiencing an exciting week once again. After hitting a low of $120,080 on Sunday evening, Bitcoin made a strong rebound on Monday morning, breaking the $122,000 barrier. As of Sunday, the Bitcoin price has risen about 3%, nearly returning to the historical high of $123,218 set on July 14.
Technical analysis shows that the upward momentum of Bitcoin continues. The relative strength index on the daily chart, (RSI), reached 65, well above the neutral level of 50, while the moving average convergence divergence (MACD) indicator showed a bullish crossover on Monday. These technical indicators suggest that Bitcoin may continue to climb. However, market analysts also remind investors that if the upward momentum weakens, the price of Bitcoin may retreat to the key support level of 116,000 dollars.
Recent policy changes and institutional capital inflows have brought new demand momentum for Bitcoin. An important executive order requires the Department of Labor to explore the possibility of allowing 401(k) retirement plans to hold Crypto Assets, private equity, and other alternative assets. This policy change could open the door for millions of retirement accounts to invest in Bitcoin, thereby stimulating purchasing demand. Some analysts believe that opening high-risk investments to these accounts could trigger "huge" market demand.
The continuous inflow of institutional funds remains an important factor supporting the price of Bitcoin. Although the price experienced consolidation last month, the spot Bitcoin ETF still recorded a net inflow of $253 million in the past week, indicating the sustained confidence of institutional investors in Bitcoin. It is worth noting that Ethereum has also gained favor among investors, with its price rising to the highest level since December 2021.
As the Crypto Assets market continues to evolve, investors should closely monitor policy changes, institutional capital flows, and technical indicators to better grasp market trends. However, given the high volatility of the Crypto Assets market, investors should also cautiously assess risks and make proper asset allocation.