Bitcoin has been on a downward trend since the recent high around 94,420 yesterday, with the overall movement characterized by a weak correction. After breaking below the key support level of 92,000, it briefly dipped to around 90,150. Ethereum, on the other hand, completely followed Bitcoin’s footsteps, falling from its previous high and finding support near 3,124 before bouncing back. However, the overall pattern remains a decline, with the two coins showing very strong correlation.

Looking at the daily chart, the previous upward channel has been broken. After a rapid surge in early January, it is now clearly entering a technical correction phase. Yesterday closed with a large bearish candle and broke through the 30-day moving average, indicating that the short-term bullish momentum is waning, and the bears are now in control. Switching to the four-hour chart, the weak tone remains unchanged. The key support at 92,155 was broken, and the MACD has already formed a death cross and stayed below the zero line, showing that bearish power is continuously releasing. The current selling pressure is the strongest since December 23, and the market is entirely dominated by sellers. The rebounds during this period are not trend reversals but weak corrections after profit-taking, preparing for further decline.

In terms of trading strategy, with the bearish trend so strong, the main approach is to short on rebounds, while occasionally trying long positions near support. Focus on the two key zones at 92,500-93,300 and 91,800-91,000 for shorts. If a rebound occurs, depending on the breakout situation, consider shorting from higher levels aiming for a 500-600 point drop. For longs, keep a close eye on the support zones at 89,800-89,000 and 88,300-87,500. If these supports hold, try to go long at lower levels, targeting 91,000, 91,800, 92,500, 93,300, 93,800, and 94,500.