Bitcoin Approaching Key Resistance at $125K, Watch for Liquidation Risks

Short-term, Bitcoin saw a rise to $119,000, with a significant move towards $125,000 potentially triggering the liquidation of $9 billion in short positions. Ethereum reached a new local high of $3,868. Binance closed a short position on $WIF worth $826,000 at a rate of 1.11. The ZORA project experienced a surge of 1,250% since June 18, which analysts attribute to Binance futures activity, although there are no significant on-chain transactions over $500,000 reported. On-chain activity included Wintermute transferring $1.4 million USDE between Bybit wallets, and approximately $1.15 million worth of $BNB moving from Binance Smart Chain to Wintermute. Additionally, Succinct announced the creation of a fund aimed at accelerating the development of the Ethereum ecosystem. Project updates indicate Terra Classic is planning an upgrade to version 3.5.0 around August 15, introducing a "zones" module that will allow certain addresses to be exempt from taxes. Meanwhile, TonTrader has launched a lottery campaign for its USDT trading platform, running from July 21 to August 11. On the macroeconomic front, the US and China extended a tariff pause for another 90 days. Trump announced a trade agreement with the EU, with European countries investing $600 million, maintaining tariffs at 15%. TRM Labs reported Russian companies are using Kyrgyzstan-based crypto platforms like Grinex, Meer, and EVDE to circumvent sanctions by converting rubles into stablecoins. In venture news, Cryptorank identified the top seven venture funding rounds of the week, though specifics remain undisclosed. Based on recent market activities, core on-chain movements combined with strategic updates suggest a cautious outlook with potential upside if key resistance levels are broken. The macroeconomic signals indicate a stabilizing geopolitical environment, possibly supporting crypto growth. However, the still active use of crypto for sanctions evasion and substantial futures activity warrants caution. Investors should monitor Bitcoin's resistance at $125,000 closely, as a breach could accelerate short-liquidation cascades, while Ethereum’s technical momentum appears strong. The upcoming upgrade in Terra Classic and announcements from major players can serve as catalysts or risks moving forward. Given the current landscape, it’s advisable to adopt a wait-and-see stance, maintaining exposure with a bias towards upside potential on confirmed breakouts, while being prepared for potential retracements.