Market Analysis – BTC rebounds strongly after breaking through the important support of $92,000, contracts explode in both long and short positions
Strong US economic data
PPI data lower than expected
CPI to be announced tonight
Analysis of Binance follow orders
GTRadar – BULL
GTRadar – Balanced
GTRadar – Potential Public Chain OKX
Focus News
This week, BTC first fell below the key support of $92,000, causing panic in the market. There were also rumors of many KOLs liquidating their positions. However, the market quickly rebounded, and BTC rose nearly 10% within two days. It first exploded in long positions and then in short positions, resulting in a total of approximately $800 million in liquidations in both directions.
With the rebound of BTC, the market also saw a wave of gains yesterday. The best-performing sector was the AI Agent sector, with gains of 10% to 20% or more, dispelling the gloom from the previous day’s plunge in the AI Agent sector. The continuous listing of AI-related tokens on Binance reflects the hot spot in the market. AI is now filled with fantasies, just like the DEFI Summer a few years ago. The previous weekly report also spent a considerable amount of space introducing AI Agent. If you want to position yourself in related sectors, the two latest tokens listed on Binance, COOKIE and AIXBT, are worth paying attention to.
According to The Washington Post, Trump is preparing to issue executive orders related to cryptocurrencies at the beginning of his administration and inviting industry leaders to formulate legislative strategies. His new appointments demonstrate his emphasis on the AI and cryptocurrency industries. With Trump about to take office, cryptocurrencies related to Trump or politics may be hyped again, such as BTC, AAVE, XRP, ADA, SOL, and DOGE.
Regarding the price trend of BTC, the price has returned to the consolidation range above $92,000. In the short term, there is no significant direction. However, there are two key points to pay attention to in the coming week. First, whether the upward movement can effectively break through the yellow downward trendline, especially with a significant breakthrough in trading volume. Secondly, the effectiveness of the $92,000 support should be carefully observed. If it breaks, reducing positions should be the main focus.
The US ISM Services data and employment data on January 8 and non-farm employment data on January 10 all indicate that the US labor market is stronger than expected, showing steady expansion. Although this is good news for the economy and suggests that the risk of a hard landing caused by the Fed’s previous rate cuts has been greatly reduced, investors now expect the Fed to maintain higher interest rates to cope with economic growth and inflationary pressures.
On the other hand, Trump is about to take office on January 20. According to Trump, the new government is likely to implement expansionary fiscal policies such as tax cuts and infrastructure investment, which may increase the fiscal deficit and increase the supply of government bonds. Coupled with increased uncertainty about the future economy and policy direction, concerns about continued inflationary pressures have deepened. Under the combined effect of these factors, US Treasury bond yields have risen sharply, putting pressure on risk assets such as Bitcoin and US stocks.
Fortunately, the US Producer Price Index (PPI) data released last night was lower than expected, indicating that inflationary pressures at the producer level have eased. This has led investors to expect the Fed to maintain the current interest rate policy, thereby reducing corporate financing costs. As a result, US stocks and cryptocurrencies have been boosted since yesterday, especially technology stocks and growth stocks sensitive to interest rates.
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