1.15 Bitcoin Market Outlook

In the past 24 hours, the crypto market has seen nearly $700 million in short positions liquidated, while long positions only liquidated around $100 million. This round of price increase has ended the large short positions around the 90,000 level. When bullish sentiment rises, the liquidated shorts can become a catalyst for further upward movement. Additionally, favorable macroeconomic conditions and domestic policies allowing individuals to hold and trade cryptocurrencies have strengthened bullish sentiment.
Yesterday, when Bitcoin was pushed up to around 93,800, buy orders volume increased twice, pushing the price to around 96,800. The subsequent one-hour K-line retracement showed no long wicks or strong selling pressure; the retracement was uneven, resembling a phased exit of profit-taking by bulls. During this consolidation, Bitcoin was heading toward 94,800. At 10 PM, buy orders volume increased again around this level, with the first one-hour candle pushing the price up by 2,000 points, and the second reaching a high level with continued buy volume, indicating strong bullish sentiment. The current upward channel is not yet complete, and there is no clear suppression. After consolidation, the market is likely to continue upward for a while.
As for Ethereum, at 6 AM, around the 3,200 level, buy orders volume increased, with a large bullish candle pushing the price to around 3,380. At that time, this bullish candle liquidated short positions worth about $170 million. This clearly fueled the bullish momentum. Therefore, after closing at 3,330, Ethereum did not continue its previous strength. After Bitcoin's buy volume pushed to new highs in the evening, Ethereum did not follow up with a rally, failing to reach the injection point. In a bullish market, this pattern often involves consolidation in the first half and a rally in the second half.
Recently, Bitcoin has gained nearly 5,000 points, while Ethereum has risen about 300 points. Many traders face the dilemma of missing the move and hesitating to chase the rally or short against the market sentiment, opting to wait and see. The details show that Bitcoin's upward push and Ethereum's divergence already indicate that bears are starting to stir. The injection point in the first zone is usually tested, and during the second test, some traders will enter short positions. As long as one side hasn't completed the test, it means only one side has been triggered. Therefore, Ethereum may consolidate and then be forced to short, while Bitcoin will continue to move upward during consolidation. The market still has room to rise: buy around 94,800-95,200 for Bitcoin, and around 3,300 for Ethereum, with a stop loss at 94,200 and 3,258 respectively. For short positions, targeting 97,500 for Bitcoin and 3,380 for Ethereum, with a tighter stop loss, risk-reward ratio remains favorable. It is recommended to follow the market sentiment. #btc #eth