Evening Market Observation on January 18

Looking at the 4-hour chart, Bitcoin has been fluctuating after a recent surge over the past couple of days. The Bollinger Bands are quite interesting—the overall trend is tightening, with the upper band beginning to turn downward while the lower band continues to rise, indicating a fierce battle between bulls and bears.

The key level is the lower Bollinger Band, where Bitcoin has found effective support. Additionally, the recent lows are gradually rising, forming a clear upward support structure. This means the space for a pullback is significantly compressed, and the downside potential is limited.

The Bollinger Bands are continuously narrowing, which usually signals that the market is about to choose a direction. Starting from the strong rally around 89,240, this current phase of consolidation is essentially a buildup process. Once the bands open upward, there is a high probability of another attack on previous highs, with a good chance of reaching new highs.

The MACD indicator also hints at a signal— the green bars are continuously shortening, which is a typical bottom divergence signal, indicating that the bullish momentum is quietly accumulating at the bottom. A rebound is only a matter of time.

Technical references:
• Bitcoin: Consider going long around 93,100-93,700, with targets at 94,300-96,500, and a breakout target at 98,000
• Ethereum: Consider going long around 3,220-3,260, with targets at 3,290-3,400, and a breakout target at 3,550