1.31 Saturday Bitcoin and Ethereum Morning Market Analysis

The direct trigger for this sharp decline was a sudden change in Federal Reserve policy expectations: Trump nominated hawkish figure Kevin Woor to be the Federal Reserve Chairman. The market expects this will promote balance sheet reduction and delay interest rate cuts, triggering concerns over tightening dollar liquidity. Coupled with silver's single-day plunge of 17% causing commodity panic, and the correlated decline of US tech stocks, all contributed to a sell-off wave of risk assets represented by cryptocurrencies.

Bitcoin's K-line shows small bearish candles with oscillation, indicating a confrontation between bulls and bears. Moving averages are in a bearish arrangement with obvious resistance. The Bollinger Bands are widening and approaching overbought territory, indicating strong bearish momentum but also a need to revert to the midline. The key resistance zone is at 84,500-85,000.

The current market is in the "rebound correction within a downtrend" stage. Although there are signs of stabilization, the overall bearish trend has not yet reversed. It is recommended to mainly short at high levels. Weekend trading volume slows down, so targets should not be overly ambitious—take profits when the market looks good!

Bitcoin: Short at 84,500, target 83,000-82,800
Ethereum: Short at 2730-2750, target 2700-2680