BTC approaches the 90,000 key level, multiple positive factors resonating to boost the crypto market

The current market presents a scenario of multiple positive signals resonating together. BTC’s performance in early February has attracted much attention. Although it pulled back from the 90,000 peak reached on January 28, the short-term technicals are still operating within a key turnover zone. According to the latest data, BTC is currently priced at $65,500, down 11.69% over the past 24 hours. Overall, it remains in a tug-of-war near a critical price level.

BTC Short-term Test of the 90,000 Key Resistance Level

After approaching the 90,000 mark in late January, Bitcoin did not experience a deep dip, indicating strong bullish momentum. The trading zone below 90,000 remains an important battleground in the short term, and moderate testing can help consolidate positions. The gains or losses at this level will directly influence whether the price can continue to break upward.

Ethereum also warrants attention. Currently trading at $1,930, down 12.08% over the past 24 hours. Ethereum’s earlier breakout above the 3,000 level reflects a linked effect driven by Bitcoin. Although analyst Li Hua has chosen to reduce positions rather than add, market sentiment still largely follows the overall trend.

Weakening US Dollar Supports Non-USD Assets

On the macro level, the continued decline of the US Dollar Index (DXY) provides important support. As the dollar weakens, non-USD currencies generally rise, benefiting traditional safe-haven assets including gold. The Royal Bank of Canada believes gold still has “upside potential,” forecasting a gold price of up to $7,100 per ounce; Citibank has also raised its three-month silver price forecast to $150 per ounce. Notably, gold has recently broken through the historic $5,150 per ounce level.

The sustained rise of US stocks also creates a risk appetite environment, with tech stocks like MU and SNDK continuing to surge. These stocks have historically been highly correlated with crypto market sentiment.

Federal Reserve Policy Outlook and Institutional Signals

Regarding the Federal Reserve, official sources suggest a pause in rate cuts, with the path to resuming cuts still unclear. The ongoing calls from Trump for the Fed to lower interest rates persist, but Polymarket’s market prediction shows a 99% probability of holding rates steady in January. The appointment of potential Fed chair Rick Rieder is also closely watched.

On the institutional front, BlackRock transferred 6,951 ETH to Coinbase Prime, signaling continued institutional interest in crypto assets. Such large transfers are often interpreted by the market as a medium- to long-term bullish signal.

Overall, although BTC faces resistance and a correction near the 90,000 level in the short term, multiple factors such as a weakening dollar, gold reaching new highs, and ongoing institutional allocations provide support for the market. Whether it can stabilize around 90,000 and break upward will depend on close monitoring of policy developments and capital flows.