The current trading price of Bitcoin ( BTC ) is $120,271, and the market landscape shows a complex situation. From a technical perspective, the weekly Relative Strength Index ( RSI ) and the Net Unrealized Profit/Loss Ratio ( NUPL ) indicators indicate that momentum has weakened, which may suggest that a potential top formation process is beginning.

However, there is still upward momentum in the short term. The technical indicators on the daily and 4-hour charts remain positive, with the RSI staying at 64. The moving average convergence divergence indicator (MACD) also shows bullish signals. This means that the market may continue to rise in the short term.

Investors should pay close attention to the following key points:

1. Technical indicator divergence: If the price of Bitcoin breaks through the new high of $123,200, while the RSI fails to create a new high, this will strengthen the signal of a top divergence.

2. Key Price Level: $123,200 is an important resistance level. If it cannot break through this position and falls below $120,000, it may trigger further pullbacks, with the next support range between $114,000 and $116,000.

3. Macroeconomic factors: The release of economic data, such as the Consumer Price Index ( CPI ), can have a significant impact on Bitcoin's performance. Investors need to combine technical analysis with fundamental analysis.

For different types of market participants, the following recommendations are made:

Short-term traders can maintain an optimistic outlook above $120,500. However, if the price falls below $119,800, a defensive strategy should be adopted, and close attention should be paid to the support level of $114,000.

Long-term investors should note that while there may be mid-term pullbacks, the overall upward trend remains intact. $92,000 could be an important long-term buying opportunity.

To more accurately assess market trends, investors can monitor the changes in the RSI and MACD indicators on the 4-hour chart in real-time, or use professional analysis tools like TradingView to delve into candlestick patterns.

Overall, the current Bitcoin market is at a critical decision point. Technical indicators show potential risks of a top formation, but there is still upward momentum in the short term. Investors need to remain vigilant, closely monitor changes in various indicators, and make corresponding adjustments based on their own investment strategies.