Saturday, January 31

Today, Bitcoin (BTC) and Ethereum (ETH) are currently in the "rebound correction within a downtrend" phase.

The direct trigger for this plunge was a sudden change in Federal Reserve policy expectations: Trump nominated hawkish figure Kevin Woorh to be the Federal Reserve Chair, and the market expects this will promote balance sheet reduction and delay interest rate cuts, causing concerns over tightening dollar liquidity. Coupled with a 17% single-day plunge in silver triggering a commodities panic, and the linked decline of US tech stocks, all together intensified the sell-off of risk assets represented by cryptocurrencies.

Technical key points:
Bitcoin (BTC) candlestick shows small bearish candles oscillating, indicating a struggle between bulls and bears. Moving averages are in a bearish alignment, with obvious suppression. The Bollinger Bands are widening and approaching overbought territory, indicating strong bearish momentum but with a need to return to the midline. Key resistance zones are at 84,500-85,000-86,000.

Bitcoin (BTC) 83,800-84,000 short position, target 83,000-82,800. After breaking below, watch for 82,500-82,000.

Ethereum (ETH) candlestick shows small bullish candles oscillating, with insufficient momentum. Short-term moving averages are in a bearish alignment, and the price is in the lower Bollinger Band region, oscillating within a range. There is a short-term technical rebound demand, but the medium-term trend remains bearish. Key resistance zones are at 2,760-2,800-2,850.

Ethereum (ETH) 2,730-2,750 short position, target 2,700-2,680. After breaking below, watch for 2,650-2,630.

The current market is in the "rebound correction within a downtrend" phase. Although there are signs of stabilization, the overall bearish trend has not yet reversed. Operation-wise, it is recommended to mainly short at high levels and buy at low levels. Until the trend is clear, it is advisable to stay on the sidelines and wait for breakout signals to follow. Continue to monitor for signs of market stabilization, then consider strategic entries. Specific real-time market conditions and levels are based on Ziqing's live trading signals.