The recent fluctuations in the cryptocurrency market are noteworthy. When trading opened in Asia on Thursday, Bitcoin fell back to around $118,000 after reaching a historic high of $123,000. Market analysts pointed out that the current market sentiment is relatively weak, and further corrections down to $115,000 cannot be ruled out. However, on-chain data still supports the continuation of the upward trend.

At the same time, Ethereum is showing strong upward momentum, currently trading around $3619, maintaining above the key moving average. Previously, Ethereum had once approached the high of $3800. $3300 is now seen as an important support level, crucial for maintaining a bullish pattern.

Recently, the cryptocurrency market has shown overall active performance, with significant gains in altcoins like Ethereum and XRP in the past few weeks, besides Bit. Currently, bulls seem to be entering a brief adjustment phase. Among the top 100 cryptocurrencies by market capitalization, most closed with a bearish candlestick on Wednesday, which may indicate a test of key resistance levels after a strong rally.

It is worth noting that traditional financial markets performed unevenly. The S&P 500 index rose slightly to 6309.62 points, reaching a new historical high, while the tech-heavy Nasdaq index fell by 0.39%, closing at 20892.69 points.

Despite the pullback, the overall sentiment in the encryption market remains in the "greed" range. The Fear and Greed Index reading is 70, suggesting that the current pullback may merely be a short-term profit-taking rather than a reversal of the long-term trend. This index has reached its highest level since July 12, reflecting the recent strong bullish sentiment among traders.

According to data from the prediction market Myriad, most users remain optimistic about the prospects of Bitcoin, believing that there is still room for Bitcoin to rise before it falls to $105,000. This indicates that although there may be fluctuations in the short term, market participants maintain an optimistic attitude towards the long-term development of encryption.

Investors should closely monitor market trends, and while seizing potential opportunities, they must also fully recognize the high-risk characteristics of the encryption currency market, make cautious decisions, and allocate assets wisely.