Recently, the Bitcoin market has undergone dramatic changes. After reaching a historical high of $126,080, the price quickly fell back to around $121,000. This price level has become the focal point of intense confrontation between the longer and the bears, with the longer trying to push the price up and the bears attempting to apply pressure, with no clear winner yet.

From the 4-hour chart, there are two key price levels to pay attention to in the short term: $121,015 as a support level, which may attract buying pressure and support the price; and $125,822 as a resistance level, a breakthrough of which is needed for further upside potential. The current price is fluctuating within this $4,800 range, as if caught in a "bull-bear squeeze," with both sides evenly matched.

Technical indicators present a contradictory situation: Although the MACD remains in the bearish-dominated negative zone, the histogram is gradually shortening, suggesting that bearish momentum may be weakening; on the other hand, the RSI has retreated from the overbought zone, indicating that upward momentum is declining. This divergence typically signals that the market is about to make a directional choice, either breaking upward or continuing to decline.

Even if the support level of $121,000 fails to hold, investors need not be overly fearful. According to Glassnode data, there is a concentrated cluster of about 190,000 Bitcoins around the $117,000 vicinity, and holders in this area are unlikely to sell easily, which is expected to provide strong support for the price.

In terms of the macro environment, the potential interest rate cut decision by the Federal Reserve is favorable for Bitcoin in the long run, as accommodative monetary policy often increases investors' willingness to allocate to assets like Bitcoin. However, in the short term, the strengthening of the dollar and the flow of funds towards safe-haven assets like gold may put some pressure on Bitcoin.

For traders, the current operating strategy is relatively clear: investors with a strong risk tolerance may consider making small purchases around $121,000, with a target price of $125,822 and a stop-loss set below $120,300; conservative investors can wait for clearer signals, such as entering the market after the price firmly stands above $126,000, or making decisions when the price drops below $120,000 or even approaches $117,000.

Regardless of the strategy adopted, it is important to remember the significance of risk control. In situations where the market direction is unclear, it is crucial to reasonably control leverage and positions to protect the safety of the principal. The Bitcoin market is ever-changing, and investors need to remain vigilant, adjusting strategies in a timely manner to cope with potential sharp fluctuations.