Wednesday🗓️ "January 14th"

How will the high-level consolidation after the surge and pullback unfold?

Yesterday, Bitcoin started to oscillate upward from around 91,000, with the price continuously rising along the short-term moving averages. Previously, Zi Qing predicted that "breaking through the 93,000 level could lead to a sustained upward trend," and this was precisely validated. The market saw an increase of over 5,000 points, with Doutu Power dominating the entire trading session, and capital absorption showing strong performance.

This morning, the price quickly surged to the intraday high of 96,800 but faced resistance and pulled back, leaving a long upper shadow on the candlestick. This pattern clearly indicates that selling pressure above this level is concentrated, and bullish momentum has significantly weakened after the rapid rise.

Currently, the price is consolidating around the $95,100 level with a narrow range, with an intraday volatility of only 0.31%. Market fluctuations have significantly contracted, and the bulls and bears are entering a brief equilibrium phase.

The key driver for the subsequent trend will focus on the performance of volume and price following the release of US CPI data: if the price, along with volume, breaks through the high zone of 96,500-96,800, the upside space will be effectively opened, with a short-term target directly aiming at the 97,000 integer level. Conversely, if the volume declines and breaks below the critical support at 94,800, it is highly likely to retest the previous consolidation platform support at 94,000. At that point, caution should be exercised regarding the formation risk of a "double top" pattern. Once the 94,000 support is broken, the market may trigger a deeper correction(Ethereum syncing with Bitcoin🫓, observing the overall structural fluctuations)

The current market is experiencing intensified disagreements within the Federal Reserve regarding policy stance (doves advocate for over 100 basis points of rate cuts throughout the year, while hawks insist on no rate cuts for now). Investors are advised to strictly control their positions and leverage ratios, as market volatility may further increase. It is recommended to avoid heavy positions and speculative trading.
$BTC ‌$ETH ‌