Amid strong U.S. economic data and a weak bond market, expectations for the Fed to cut interest rates this year are facing unprecedented challenges. Last night, U.S. stocks were closed in mourning for Carter, but the 24-hour cryptocurrency market could not escape pressure. As investors anxiously await the employment data to be released on Friday, Bitcoin's price has significantly dropped to a new low in over a month.

On the eve of the U.S. non-farm payroll report for December last year, Bitcoin faced selling pressure again in the early hours of today (10th), plummeting over $2,000 at one point, but the decline subsequently eased, managing to hold above $91,000, with a low of $91,250. The price has currently rebounded to above $94,000.

This wave of selling undoubtedly casts a shadow over the cryptocurrency market, which had just experienced a strong upward trend at the end of last year. Moreover, it is normal for the market to rise and fall; the key is to analyze calmly and not panic at the first sign of a drop; be rational! Yesterday it was said that Americans would sell the Silk Road's BTC, and the market immediately panicked, leading to a surge in short-term panic sentiment. Additionally, the market had risen too sharply previously, and it is currently in a corrective phase. Before the understanding king takes office, some funds have also withdrawn to avoid risk.

But know that whether it’s BlackRock or MicroStrategy, the reason they continue to buy regardless of cost is that from a top-level perspective, the game has just begun. There are some consensus within certain interest groups that we ordinary people cannot glimpse, but we only need to understand from their actions that the game has just begun. As for what comes next? Will BTC continue to fall? What to do if contracts are stuck? Let's analyze it together.

How much deeper will Bitcoin fall?

Currently, Bitcoin, Ethereum, and SOL have all retraced to previous low price points. The market seems to gradually accept the reality that these support levels might be breached. This is usually a key moment when panic sentiment begins to spread.

But still, as the old saying goes, this does not mean the market is entirely bearish! The current market situation is quite exhausting, but know that something big is on the way! The pullback is just a temporary breather, and Trump's inauguration on January 20 will bring optimism to the market. This is a significant positive factor, and in the long run, the market is expected to initiate a new wave of upward movement.

Opinion as of yesterday: I still believe that the bottom support level of the range is around $92,000. Currently, Bitcoin's price has not broken this range. Although the price once fell to $91,200, it has rebounded, indicating a false break. The current support level is still valid.

Of course, being a bit more prudent, I still hope to wait for a market rebound. Just like before, when prices began to rebound, bulls started to fight back, and bears could not push down to new lows. Then bulls kept breaking through new highs. Under such circumstances, there will be opportunities to enter the market.

Should we reduce our positions now: Currently, we have not yet awaited the release of the non-farm data. We can observe whether a structural bullish trend can emerge. If a structural bullish trend can be established, then there is no need to wait for the evening's data to reduce positions. Specifically, attention can be paid to the $97,000 line that divides bulls and bears; it would be better to enter this area, but when approaching this area, gradual position reduction should occur. Once a bullish structure is established, it is essential to set stop-losses when trading contracts. Even if a bullish structure emerges, stop-losses must be set because market conditions can change dramatically at any time.

The expectation of a decrease in the Federal Reserve's interest rate and a stronger dollar continue to exert pressure on cryptocurrencies and traditional markets. Despite Bitcoin having strong on-chain support, its price movements are increasingly influenced by broader market trends, suggesting potential short-term risks ahead.

Global liquidity fluctuations also bring some pressure to Bitcoin. Historical data shows that changes in liquidity usually lead Bitcoin price movements by about 13 weeks. With the dollar strengthening after Trump's re-election, global liquidity measured in dollars is beginning to tighten, indicating that Bitcoin may enter a consolidation phase in the near future.

However, this consolidation is expected to be a temporary phenomenon. Overall, risk assets (especially Bitcoin) still show positive long-term potential. Nevertheless, higher caution should be maintained in a weaker liquidity environment.

In summary, the Silk Road selling coins, Trump's remarks, and interest rate cut expectations are all just hurdles on the way to reaching $130,000 and $150,000. Invest with a long-term mindset; no one can cut you off! Firmly believe in this saying: Everything that happens must be beneficial to me. This is how it has been over the years. Don't panic!

Lastly, I want to say: Bitcoin must break through $94,300 and hold steady to form a more significant rebound structure. Tonight's non-farm employment data and the fluctuations in USDT and 10-year treasury yields may bring drastic changes. The current market is recovering; I suggest gradually reducing positions and setting profit-taking and stop-loss measures because the evening is unpredictable. If a major reversal occurs tonight like last time, quickly plummeting and then spiking upward, we will follow up.