Bitcoin News: QCP Capital Warns Bitcoin Range-Bound as USD Short Squeeze Risk Looms

QCP Capital says Bitcoin’s struggle to break above $120K signals short-term weakness, warning that a U.S. dollar short squeeze could trigger a wider crypto sell-off.Key TakeawaysBitcoin remains range-bound between $116K–$120K, with repeated attempts to break higher failing.QCP Capital warns of a possible USD short squeeze, which could spark a “risk-off” wave across stocks, emerging markets, and crypto.Institutional inflows and regulatory progress remain supportive, but short-term momentum is stalling despite bullish headlines.Bitcoin’s Narrow Trading Range Raises QuestionsQCP Capital noted in its latest market update that Bitcoin (BTC) is stuck in a “narrow range”, struggling to break decisively above the $120,000 resistance level.Meanwhile, buying support near $116,000 has held firm, preventing deeper declines. But the lack of reaction to positive headlines — including U.S. pro-crypto regulatory wins and ETF developments — suggests short-term weakness in market sentiment.“Historically, when the market has frequent bullish news but stagnant prices, it often indicates short-term weakness,” QCP warned.Dollar Short Squeeze Could Hit Risk AssetsQCP highlighted a structural risk emerging outside crypto:CFTC data shows traders are heavily short on USD/JPY, reflecting expectations for a weaker dollar.QCP cautions that if a USD short squeeze unfolds, it could trigger risk-off flows across equities, emerging markets, and crypto assets.Medium-Term Outlook Still BullishDespite near-term caution, QCP emphasized that institutional inflows and regulatory momentum remain constructive for Bitcoin and Ethereum in the medium term.However, Ethereum’s rally has also slowed as it approaches the psychological $4,000 level, with momentum indicators turning neutral.Macro Focus: Fed, Tariffs, and Q3 OutlookQCP said markets are now focused on upcoming U.S. macro data, including:Inflation and employment numbersThe impact of tariffs on corporate earnings and consumer pricesThe firm expects the Federal Reserve to hold rates steady at the July FOMC meeting, while signaling a data-dependent stance ahead of September — when a potential rate cut is “delicately balanced.”