Yesterday (January 25), Bitcoin experienced significant selling before the weekend's weekly close, resulting in an overall decline. Concerns over macroeconomic and political risks intensified the downward trend.

📉 Key Data from Yesterday

Price Performance:

· Lowest Price: Dropped below $86,000 at one point, hitting a new low in over a month.
· Closing/Latest Price: After a slight rebound later in the day, the price hovered between $87,800 and $88,265.

Market Background:

· Main Concerns: Potential government shutdown in the US, former President Trump's tariff threats against Canada, and geopolitical tensions—all contributing to capital outflows from risk assets like Bitcoin.
· Liquidations: Sharp price swings triggered over $583 million in leveraged position liquidations in the past 12 hours, with the vast majority being long positions (buying bullish contracts) forcibly closed.

👀 Market Analysis and Outlook

Opinions among traders and analysts are divided regarding the upcoming trend:

· Bearish Outlook (Short-term): Any short-term price rebounds could present opportunities for shorting. The key support level is around $86,300. If broken, the price could further decline into the low $80,000s.
· Technical Analysis Divergence: Some analysts suggest that if a "bearish flag" pattern forms and breaks down, the long-term target could be around $60,000. Others believe a short-term technical rebound to the $91,000 - $92,000 range is possible.
· Macro Focus: All eyes are on this week's Federal Reserve interest rate decision, which will be the next major event influencing market direction.

💎 Summary

In summary, yesterday's Bitcoin decline was mainly driven by risk-averse sentiment triggered by macroeconomic uncertainties. Although the price rebounded from the intraday lows, overall market sentiment remains cautious. The future trend will largely depend on the outcome of key macro events this week, such as the Fed's decision.