Crypto investment firm QCP Capital announced in its analysis report that Bitcoin experienced a short-term correction after surpassing the $120,000 level and is currently finding support around $115,000.
QCP Capital: Bitcoin Pulled Back After Surpassing $120,000, But Market Still Structurally Strong
As summer approaches, a seasonal decrease in trading volume is observed in the cryptocurrency market.
Another key point highlighted in the report is the 10% depreciation of the dollar index since the beginning of the year. This paves the way for strong performance in dollar-denominated assets, particularly Bitcoin.
QCP Capital also noted that Ethereum has recently outperformed Bitcoin. This strengthening is attributed to institutions like SBET, which have taken steps to diversify its Ethereum-based treasuries, and the increasing trend of other companies to increase their Ethereum holdings.
Retreat Can Be a Healthy Correction
According to the analysis, a pullback to $110,000 could allow Bitcoin to consolidate more robustly in the current uptrend. QCP Capital analysts emphasized that the overall market sentiment remains bullish and structurally positive.
Although crypto markets tend to stagnate in terms of volume during the summer months, analysts believe such pullbacks present opportunities for long-term investors.
*This is not investment advice.