Bitcoin is currently in a critical stage of its rising cycle, with market focus concentrated on the historical high of $123,000. This price level has become a battleground for intense competition between bulls and bears, making price fluctuations inevitable. Based on Bitcoin's past performance, there is usually a brief breakout followed by a pullback. If a true peak is reached, a sharp fall may occur; if it is merely an adjustment, it is likely to consolidate sideways near $123,000 before continuing to push upward. Short-term traders should closely follow the micro trends at this price level.

For investors holding spot positions, patience can be maintained while waiting for new long opportunities, anticipating a breakthrough of historical highs. The upcoming CPI data is crucial and may solidify expectations for a 0.25% rate cut next month, even sparking discussions of a 0.50% rate cut. Such an unexpected positive could directly stimulate market fluctuations.

Currently, Bitcoin and Ethereum are showing a rotation pump trend, which is a typical characteristic of a healthy bull market, indicating that we may be entering a new phase of the market cycle. These two major cryptocurrencies may still need some time to complete the price discovery process. Only after they truly finish the valuation release, mainstream altcoins like BNB, SOL, and XRP may usher in a big market.

It is worth noting that the main force driving the market currently is not retail investors, but institutional investors. Therefore, caution must be exercised when selecting altcoins, focusing on those that can maintain strong performance consistently. At this stage, precise selection is more important than blindly chasing pumps.