1-31 Morning Market Analysis

Good morning everyone, and happy weekend! Recently, the cryptocurrency price has shown a clear downward trend. Old Guo’s rhythm control is nearly perfect, with short-selling strategies perfectly executed for profit-taking and exiting the market—truly a money-making opportunity. Yesterday, both Bitcoin and Ethereum profits were simultaneously harvested; friends who followed the trades have already secured their gains. Unsure about the market direction or operations? Just trust Old Guo!

The direct trigger for this sharp decline in prices was a dramatic shift in the Federal Reserve’s policy expectations: Trump nominated hawkish figure Kevin Woorh to be the Federal Reserve Chair. The market generally expects his appointment to accelerate the balance sheet reduction process and delay interest rate cuts, which has triggered strong concerns about tightening dollar liquidity. Meanwhile, silver experienced a 17% single-day plunge, sparking panic across the commodity markets. Coupled with the synchronized decline of tech stocks in the US stock market, multiple negative factors resonated, ultimately intensifying the sell-off of risk assets led by cryptocurrencies.

From a technical perspective, Bitcoin’s daily chart shows a small bearish candle with sideways consolidation, indicating a stalemate between bulls and bears. The moving average system is in a standard bearish arrangement, with significant upward resistance. Currently, the market is in a “rebound correction within a downtrend” phase. Although there are signs of stabilization, the overall bearish trend has not yet reversed. It is recommended to focus on high short positions.

BTC Trading Advice
Short in batches within the 84500-84800 range, targeting 83000-82500