Recently, Bitcoin has shown significant support at the $117,000 level, and after stabilizing at this position, it has gradually rebounded, indicating a warming market sentiment in the short term. From a technical analysis perspective, the importance of this support level is noteworthy. Previously, Bitcoin has attempted to test this area multiple times without being effectively broken, and during the rebound process, there has been a certain increase in volume, indicating that there is a strong defensive willingness from longer at this position.

For investors, it is crucial to focus on whether Bitcoin can hold the $120,000 round number. If an effective breakthrough can be formed, it may provide a signal for short-term entry. However, investors should also be wary of the risk of a rebound lacking strength, leading to a drop back to the support level.

As Bitcoin enters a consolidation period, market funds often seek more resilient investment targets, and well-performing small-cap cryptocurrencies (commonly known as "altcoins") may encounter a phase of opportunity. These types of cryptocurrencies typically possess the following characteristics: First, they maintain relatively independent strength during market fluctuations, and have not experienced significant pullbacks along with Bitcoin; second, their technical patterns are complete, such as steadily rising along short-term moving averages, with volume and price changes reasonably matched, without obvious divergence signals; finally, they are supported by solid ecosystem developments or positive expectations, rather than relying solely on market sentiment speculation.

However, the small-cap cryptocurrency market has always been highly volatile. Even for assets with relatively stable trends, investors need to set reasonable profit-taking and stop-loss strategies according to their own risk tolerance. At the same time, closely monitoring the trend of Bit is crucial—acting as a market barometer, if Bit breaks the consolidation pattern and chooses a clear direction, most small-cap cryptocurrencies will still follow its rhythm.

The current cryptocurrency market is in a critical stage of a long-short game. Whether investing in Bit or small-cap cryptocurrencies, a cautious attitude should be maintained to avoid chasing highs. It is advisable to prioritize selecting investment targets that have pulled back to reasonable levels and have clear support, while seizing potential opportunities under strict position control. In this uncertain market environment, rational analysis and risk management are more important than ever.