After a panic bottoming, the market is under pressure and fluctuating! When will the short-term breakout signal for Bitcoin appear?

Recently, multiple negative factors have suppressed market sentiment, and Bitcoin is under obvious short-term pressure. The surge in gold prices above $5,000 has attracted safe-haven funds to withdraw from the crypto market. The escalation of US-Iran geopolitical conflicts has increased market risk aversion; the Fed's rate cut in January is unlikely, and high interest rates have raised the cost of holding cryptocurrencies. Coupled with the risk of a US government shutdown at the end of the month, investors are taking profits and staying on the sidelines. Meanwhile, Bitcoin spot ETF net outflows continue, with institutions short-term exiting and observing, further creating selling pressure. Only the long-term positive outlook from US crypto legislation provides some emotional hedging.

Technically, Bitcoin dipped to $86,035 in the early morning and rebounded weakly supported by the 200-day moving average. It is currently trading sideways in the 87,000-88,000 range, with 88,000 acting as a short-term strong resistance. The daily chart shows a weak structure. The hourly indicators suggest a slight short-term correction is needed, but the Bollinger Bands on the daily chart are opening downward, indicating that the bearish momentum has not been fully released. The shrinking volume also makes a rebound lack momentum, with significant divergence between bulls and bears.

Trading advice: in the short term, maintain a light position and observe, avoid high leverage operations, and beware of double-sided losses during fluctuations. If the rebound reaches around 88,500-89,100, the target is to watch for a decline to around 84,000-85,000.

The above is only personal advice for reference. Please follow Cheng Jingsheng's layout for specific strategies.