2026-01-21 01:20:31

Bitcoin woke up and dropped to $88,000, and the market pressure is indeed significant. Currently, from a technical perspective, the short-term key support level is stuck between $88,000 and $90,000. If it falls further, the medium-term strong support is at $85,000. On the rebound, resistance is around $92,000 to $94,000, with a stronger resistance at $95,000.

Why did it fall so much? There are several main factors at play. First, Japan's long-term government bond yields have now broken 4%, putting pressure on global long-term assets, and risk capital is withdrawing. Additionally, news of the US imposing tariffs on Europe caused the market to suddenly shift into risk-averse mode, with funds rushing into traditional safe-haven assets like gold, and cryptocurrencies naturally took a hit. Moreover, the Federal Reserve paused its rate cuts, and institutional ETF fund inflows have noticeably slowed down, dampening expectations for easing policies, which greatly reduced the attractiveness of risk assets.

However, to be honest, although the overall atmosphere isn't very optimistic, Bitcoin still has the potential for a rebound from a technical standpoint. But this rebound space is limited, and the uncertainty is relatively high. The key is to watch whether the $90,000 support level can hold. In the short term, if there is a rebound, the target range is roughly between $92,000 and $94,000, but whether it can reach that depends on market sentiment.

BTC-1,52%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

13 Likes

Reward
13
6
Repost
Share

Comment

0/400

SmartContractPhobia

· 5h ago

$88,000 starts to make you nervous, but where are we really heading? --- If we can't hold $90,000, it might drop to $85,000, and then it could be a good buying opportunity. --- Japanese government bond yields breaking 4% is indeed intense; funds are rushing into gold, and we still have to endure the fallout here. --- A rebound is a rebound; don't get caught up in those small targets of 92 to 94. Let's see if we can get back above 9.2 first. --- The Federal Reserve should have started cutting rates when they paused; it's a bit late to react now. --- Tariff wars + risk aversion, when combined, leave us with little to do but lie low. --- It all disappeared overnight—that's the fate of risk assets. --- Does anyone think this drop is actually an opportunity? The bottom line is still there. --- The real problem is the slowdown in institutional ETF inflows; retail investors can't withstand the selling pressure from institutions no matter how they buy. --- Can $90,000 be maintained? Honestly, I'm not very optimistic; it mainly depends on how the international situation unfolds.

View OriginalReply0

ForkItAll

· 5h ago

I knew this level at 88,000 would come... As soon as the Federal Reserve pauses interest rate cuts, funds will immediately flee. The logic behind this decline is actually very clear. Whether 90,000 can hold is the key; if it breaks, then we’ll have to watch that 85,000 line.

View OriginalReply0

HappyMinerUncle

· 5h ago

88,000? Oh man, it dropped again. This time it really hurts. Japanese government bonds broke 4%, and the Federal Reserve is holding steady again. This game of chess... is indeed hard to play. Can 9 million be maintained? I bet it can, otherwise we’ll have to look at 8.5. Gold is bleeding again, all risk assets are being treated as trash. Damn it. Sell when it rebounds to 94,000. Don’t be greedy; this market is too bizarre right now. If the tariff war breaks out, no one will have it easy, and crypto will be even worse. If the support level is lost, it’s over. Keep an eye on it. So, is it time to buy at the bottom or keep watching the show? I’m a bit unsure. It feels like this wave will shake out quite a few people, and it’s time to cut losses again. I’ll be satisfied if I can sell in the 92-94 range, don’t expect it to go higher.

View OriginalReply0

ApeShotFirst

· 5h ago

Wow, 88,000? Got cut again overnight? Japan's national debt breaking 4% is really the end of the line, the whole world is fleeing, and our broken coin is directly treated as a high-risk asset and dumped..

View OriginalReply0

FOMOSapien

· 5h ago

Is 88,000 already causing panic? I'm just waiting here for 90,000 to break, and that will be the real opportunity. Japanese government bond yields breaking 4% is indeed a bit intense, but how long this risk-avoidance wave can last is really hard to say. The 9.2-9.4 range is a hurdle for the rebound; it feels very difficult to break through. The Federal Reserve's pause directly shattered everyone's hopes of rate cuts, serves them right. 92,000-94,000? Dream on, it depends on whether the market gives this face. With so many uncertainties in the short term, I think I'll just stay flat and watch, no need to mess around. Only consider jumping in if it breaks 85,000; it's too annoying right now. Gold is a money grab, Bitcoin is being dumped—this market is really frustrating. Can the support level hold? It feels a bit shaky, everyone. Institutional ETFs slowing down indicates that big players are not that optimistic either.

View OriginalReply0

SolidityJester

· 5h ago

88,000 has dropped so much, I really can't hold on anymore, it feels like 90,000 is also hanging by a thread --- Both US debt and tariffs, this combo punch is too harsh, risk assets are crying and fainting in the bathroom --- 92k to 94k? Dreaming, if we can hold onto 90,000, that’s a high blessing --- Gold has risen so sharply, but BTC is still struggling here, something's off --- As soon as the Federal Reserve pauses rate cuts, the market panics, this dependency is incredible --- 85,000 is the last line of defense, if it breaks, I’ll have to consider life --- Saying there’s a possibility of a rebound, that’s just "it might go up or down," basically no statement --- The real bad news is if the key support can’t hold, now it’s just waiting for institutions to decide what to do --- Global safe-haven mode activated, cryptocurrencies have become cannon fodder, just the old routine --- We must hold onto the 90,000 level, or the mentality will collapse

View OriginalReply0