1-22 Bitcoin Short-term Analysis:

From the perspective of the time cycle on the market, we can see that around 107,000 is a turning point, marked by a significant drop in volume. After the price dropped to 100,000 USD, buyers began to step in, and then it slowly started to rise. Therefore, from a structural standpoint, as long as the price of 99,500 is not broken, we cannot conclude that the bullish structure is destroyed.

But why did Dan mention yesterday that one could consider shorting Bitcoin around 106,000? From the candlestick chart, when the volume surged and the price dropped at 107,000, a significant resistance level was formed here in the short term. Without fundamental support for Bitcoin, it is difficult for it to break through on the first attempt. Thus, Dan believes this can serve as the first shorting point, which is a bearish perspective.

From a bullish perspective, there is currently a downward trend line that has not been broken, and the short-term trend is forming a channel. Therefore, the price of 104,000 is a short-term support point for bullish traders. Once it breaks down and cannot recover, one should choose to cut losses and wait for opportunities.