January 8 Market Overview: Bitcoin gave investors quite a scare today. Sliding down from $93,000 in early trading, it's currently hovering around $91,000, with a 24-hour decline approaching 3%, and intraday lows even touching $90,800. Rebound opportunities are limited, and bear sentiment is intensifying.
Capital flows are the main driver. A leading fund's Bitcoin fund saw net outflows of $583 million today, marking the second-highest record since last year. Two major institutional asset management products alone saw daily outflows close to $400 million, with institutions' intent to cash out at scale quite evident. On the macro front, the Federal Reserve's meeting minutes were just released, and the language around inflation has made markets nervous; simultaneously, dollar strength, short-term holders continuously transferring positions to exchanges, and retail investors following suit with stop-loss sales have created wave after wave of selling pressure.
Technically speaking, the price has broken below the 2-hour line and 30-day moving average, with clear short-term resistance. Fortunately, the 120-day moving average (around $90,700) is still holding support, preventing the price from directly breaking below the $90,000 psychological level. The current situation is a classic dilemma—$93,000 above is clear resistance, $90,000 below is ultimate support, and if it breaks down, it may test around $84,500. Interestingly, retail positions on a leading exchange still show 70% bullish sentiment, making the divergence between institutions and retail quite thought-provoking.
Two key points to watch in the near term: whether $90,000 can hold steady, and how non-farm payroll data performs this weekend. Weak data might actually ease market concerns about rate hikes, giving Bitcoin breathing room; if data comes in strong, it's another story, potentially adding to downward pressure. Spot traders are advised not to rush into bottom-fishing; wait for $90,000 to confirm stability before building positions in tranches; for futures trading, be sure not to take heavy long positions against the trend—recent liquidation lessons are there for all to see. It'll be more reassuring to wait for clearer rebound signals before participating.
January 8 Market Overview: Bitcoin gave investors quite a scare today. Sliding down from $93,000 in early trading, it's currently hovering around $91,000, with a 24-hour decline approaching 3%, and intraday lows even touching $90,800. Rebound opportunities are limited, and bear sentiment is intensifying.
Capital flows are the main driver. A leading fund's Bitcoin fund saw net outflows of $583 million today, marking the second-highest record since last year. Two major institutional asset management products alone saw daily outflows close to $400 million, with institutions' intent to cash out at scale quite evident. On the macro front, the Federal Reserve's meeting minutes were just released, and the language around inflation has made markets nervous; simultaneously, dollar strength, short-term holders continuously transferring positions to exchanges, and retail investors following suit with stop-loss sales have created wave after wave of selling pressure.
Technically speaking, the price has broken below the 2-hour line and 30-day moving average, with clear short-term resistance. Fortunately, the 120-day moving average (around $90,700) is still holding support, preventing the price from directly breaking below the $90,000 psychological level. The current situation is a classic dilemma—$93,000 above is clear resistance, $90,000 below is ultimate support, and if it breaks down, it may test around $84,500. Interestingly, retail positions on a leading exchange still show 70% bullish sentiment, making the divergence between institutions and retail quite thought-provoking.
Two key points to watch in the near term: whether $90,000 can hold steady, and how non-farm payroll data performs this weekend. Weak data might actually ease market concerns about rate hikes, giving Bitcoin breathing room; if data comes in strong, it's another story, potentially adding to downward pressure. Spot traders are advised not to rush into bottom-fishing; wait for $90,000 to confirm stability before building positions in tranches; for futures trading, be sure not to take heavy long positions against the trend—recent liquidation lessons are there for all to see. It'll be more reassuring to wait for clearer rebound signals before participating.