Bitcoin News Today: Bitcoin Trapped Below $120,000 as Bullish News Fails to Drive Price Higher

Bitcoin remains confined within a trading range, hovering below the $120,000 threshold while finding support near $116,000, according to QCP Capital’s latest analysis on July 30. The firm notes that despite the sustained buying pressure in this range, the cryptocurrency has shown little reaction to positive developments, such as the passage of favorable U.S. regulatory policies and the progress of spot and derivative ETFs[1]. This muted response is historically associated with short-term bearish tendencies in markets flooded with bullish news but lacking in upward price action.

Ethereum, meanwhile, appears to be losing momentum as it approaches the $4,000 psychological level, with its trend indicators showing a shift toward neutrality. Institutional inflows and evolving regulatory conditions, however, continue to support the possibility of new highs for the crypto market in the medium term.

A key concern for QCP Capital is the potential for a U.S. dollar short squeeze. CFTC data reveals that traders have taken highly bearish positions on the USDJPY pair, a sentiment that becomes increasingly costly as time passes. Should this market consensus be challenged, a short squeeze could trigger a broad selloff across equities, emerging markets, and cryptocurrencies as investors adopt risk-off strategies[1].

Looking ahead, the firm is closely monitoring macroeconomic data, particularly U.S. inflation and employment figures, which will be critical in shaping the trajectory of the third quarter. The potential impact of tariffs on corporate profits and consumer prices further underscores the importance of this period. QCP Capital expects the Federal Reserve to maintain its current interest rate stance following the July FOMC meeting, with a likely emphasis on data dependency. The September meeting remains pivotal, with the probability of a rate cut still delicately balanced.

Source: [1]QCP Capital: Bitcoin in Range-Bound Action, Dollar Short Squeeze Could Trigger Cryptocurrency Sell-Off Risk......................................(https://www.theblockbeats.info/en/flash/305164)