Bitcoin has recently set a new historical high again, reaching around the price level of 123200 USD. However, the driving force behind this rise is worth exploring in depth.

The current price rise is not solely driven by market sentiment, but is influenced by multiple factors, including the entry of institutional investors, changes in the policy environment, and expectations of interest rate cuts. This complex backdrop makes the current rise lack a solid foundation, and investors need to be alert to the possibility of a significant correction.

From a technical perspective, the 4-hour chart shows a continuous bullish trend, indicating strong buying power. However, it is worth noting that the KDJ indicator has begun to present a converging death cross pattern at high levels, while there have been consecutive long upper shadows on the hourly chart. These technical indicators suggest that upward pressure is increasing in the short term, and the market may need to undergo a technical adjustment.

Based on the current market conditions, investors may consider adopting a cautious short-selling strategy in the range of 112000 to 112500, with a target price set around 110000. However, given the high volatility of the cryptocurrency market, investors should strictly control risks, set reasonable stop-loss levels, and continuously monitor market dynamics to adjust their strategies.

In addition, long-term investors may need to pay attention to the fundamental developments of Bitcoin, including network upgrades, the level of institutional adoption, and global macroeconomic factors, all of which could have a significant impact on the long-term trend of Bitcoin.