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After rising yesterday due to news that Trump might sign an executive order allowing cryptocurrency assets to be included in 401K retirement plans, Bitcoin experienced a slight pullback today. This potential policy change has sparked optimism in the market, as the approximately $9 trillion size of the 401K retirement fund pool could bring significant inflows to Bitcoin.
Recently, the surge in institutional demand has become the main factor driving the rise in Bitcoin prices. Since its launch in February, the total inflow of Bitcoin ETFs has approached a historic high of nearly $15 billion, making it one of the most popular ETF assets. The continued accumulation by large funds and enterprises has further strengthened the bullish sentiment in the market.
From a technical analysis perspective, Bitcoin has gained new support at the low point of the bull market channel. Currently, $121,500 is viewed as a key resistance level. If the bulls can break through this level, the next target could be $136,395. However, the momentum indicators show some bearish divergence, and the price is also moving within a descending wedge pattern, which may suggest a potential reversal risk.
In the long term, as long as the price of Bitcoin can remain above $108,855, the overall bullish trend will continue. However, investors should closely monitor market trends, especially news related to policies, as these factors may have a significant impact on the future movement of Bitcoin.
Although short-term fluctuations may be faced, the continued participation of institutional investors and potential policy support may provide strong support for the long-term development of Bitcoin. Investors should consider multiple factors comprehensively and maintain a cautious attitude when making decisions.