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January 21 Bitcoin and Ethereum Market Analysis
The recent decline was mainly triggered by Trump's tariff threats causing risk appetite to shrink, along with related legislation suspensions leading to capital withdrawal from leverage. Bitcoin is currently supported at $87,800, but bullish signals are unclear. A confirmed reversal requires breaking through and stabilizing above the $92,000 resistance zone; otherwise, it may continue to decline to $88,000-$86,000. Ethereum has fallen to $2,900, approaching a one-month low, with $2,900 serving as the last line of defense for the bulls.
Key Focus: Whether tariffs will be escalated, European countermeasures, and the US Supreme Court's ruling stance.
Trading Suggestion: A short-term short position can be considered on a rebound to $91,000.