Bitcoin has recently shown a fluctuating downward trend, with prices hovering around $118,000. However, there may be support in the short term.

In the early hours, the market experienced large-scale sell-offs, further suppressing the Bitcoin price. From a technical analysis perspective, the KDJ indicator continues to diverge after a death cross, indicating that downward momentum is continuously strengthening. Additionally, the bearish engulfing pattern that appeared around 10 PM corroborates the signs that the main funds are withdrawing, and the current market environment seems to favor a bearish dominance.

Nevertheless, there are still some uncertainties in the market. Investors should closely monitor the trend in the range of $118,300 to $118,800. If it falls below this range, the next key support level may be around $117,000.

It is worth noting that although Bitcoin is facing downward pressure in the short term, the cryptocurrency market has always been subject to significant fluctuations, and the situation may change at any time. Investors should take into account various factors when making decisions, including the global macroeconomic situation, changes in the regulatory environment, and market sentiment.

At the same time, we should also pay attention to the broader economic context. The recent tariff agreement reached between the United States and the European Union may impact the global economy, thereby indirectly affecting the cryptocurrency market. This once again reminds us that when analyzing digital assets such as Bitcoin, we cannot overlook the importance of traditional financial markets and international trade trends.