Correction Following a Record High Continues

Summary:

Following a record high in January, Bitcoin has experienced a notable correction. Recent trading activity has been subdued, and the cryptocurrency remains in a pattern of volatile oscillation.

SELL BTC-USDT

Close Time

CLOSED

98000.0

Entry Price

93000.0

101000.0

81444.9 +533.6 +0.66%

2094.4

Pips

Profit

93000.0

95905.6

Exit Price

98000.0

Entry Price

101000.0

Fundamentals

Bitcoin's demand surged, reaching a record high of US$109,000, fueled by optimism surrounding Trump's presidential inauguration in January. However, it has since failed to sustain the US$100,000 level, recently fluctuating between US$93,000 and US$98,000. According to CryptoQuant's report, the growth in Bitcoin BTC demand has declined from a peak of 279,000 BTC on December 4 to a recent 70,000 BTC. The past two weeks have also seen net outflows from Bitcoin spot ETFs, indicating a clear slowdown in demand. Furthermore, on-chain activity and liquidity conditions for Bitcoin remain subdued, signaling potential downward pressure on prices.

Meanwhile, Trump's tariff proposals have raised concerns about escalating global trade tensions, dampening market risk appetite and reducing investor speculative interest in cryptocurrencies. While Bitcoin may be nearing a bottom in the near term, the possibility of further declines cannot be ruled out.

Technical Analysis

Correction Following a Record High Continues_1

In the 4H timeframe, the BTCUSDT is experiencing subdued trading activity recently, consolidating within a narrow range around 96,000. The BTCUSDT maintains support above the robust level of 92,000, while facing resistance at 98,200, with no clear signs of a breakout. Despite the increasing maturity of Bitcoin investments and its promising long-term potential, the short-term consolidation pattern persists. Further downside may occur before a definitive bottom is established.

A range-bound approach is recommended, namely going short at the highs and going long at the lows. In the short term, it is recommended to go short if the price stabilizes near 98,200, with a target set around 93,000 and a stop-loss above 100,000.

Trading Recommendations

Trading Direction: Sell

Entry Price: 98000

Target Price: 93000

Stop Loss: 101000

Support: 93000/92000

Resistance: 98200/100000

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