Bitcoin rebounds to $91,000 still under pressure; profit-taking and low trading volume limit the rebound

Source: BlockMedia Original Title: [Coin Market] Bitcoin Recovers to $91,000… but Faces ‘Hesitation’ Again on Profit Taking Original Link: Bitcoin (BTC) rebounded to the $91,000 range after dropping to $89,000, but the overall market still faces correction pressure. Profit-taking after the early-year rebound, shrinking trading volume, and weakening Fed rate cut expectations have all contributed to downside risks in the digital asset market.

According to data at 8:30 AM on January 9, domestic exchanges showed Bitcoin increased by 0.34% to 1.3346 billion KRW compared to the previous morning at 9:00 AM. Global exchange quotes stood at $91,289, down 0.08%. During the same period, Ethereum fell 1.64% to $3,118, and XRP dropped 2.06% to $2.13.

According to CoinGlass data, approximately $124.69 million in Bitcoin positions were liquidated in the past 24 hours, with about 82.14% being long positions. The entire digital asset market experienced $409.51 million in liquidations.

The recent decline is a continuation of the adjustment for Bitcoin after failing to break through $95,000 on January 5, marking the third consecutive trading day of correction. From a technical perspective, the 50-day moving average at $89,200 provided strong support.

Trading firm Wintermute analysts believe that in a low-volume environment, profit-taking and outflows from Bitcoin spot ETFs dominated the market weakness over the past two days. Jake Ostrovsky, Head of OTC at Wintermute, said, “Risk asset appetite restarted at the beginning of the year, but since Bitcoin failed to break through the $95,000 resistance level, ETF fund outflows have dominated the market in recent days.”

From a macroeconomic perspective, the decreasing likelihood of a rate cut by the US Federal Reserve is restraining the digital asset market. According to the CME FedWatch tool, the probability of a rate cut at the Federal Reserve meeting on the 28th of this month has sharply declined from 23.5% a month ago to 11.6% now.

The high leverage in the derivatives market is also considered a potential risk factor. Currently, open interest in Bitcoin futures and options is about 700,000 BTC, an increase of approximately 75,000 BTC from the beginning of the year, reaching a three-week high.

Ostrovsky pointed out, “Funding rates remain positive, indicating that investors are using leverage to buy during price declines. In this scenario, if prices cannot rebound, forced liquidation of long positions—so-called ‘long squeeze’—is very likely.”

Market focus is on the US December employment report released today. This data is the first employment report to be published on time after the federal government shutdown and is seen as a key indicator for the Fed’s interest rate path this year.

According to Bloomberg, last month’s new jobs are expected to increase by 70,000, with the unemployment rate expected to decline to 4.5%. This employment indicator is considered a core variable for judging the Fed’s future rate path, and the short-term funding market has already reflected the possibility of at least two rate cuts this year.

Additionally, the Alternative Fear & Greed Index, which reflects market sentiment towards digital assets, dropped to 28 points on the day, significantly down from 42 points the previous day. The index indicates stronger selling pressure as it approaches 0, and a stronger buying tendency as it nears 100.