Bitcoin faces pressure and tests the 90,000 support level; is this rebound a 'bull trap'?
On Thursday (January 8), during the Asian session, Bitcoin attempted to hold the 91,000 USD mark after a sharp drop the previous day. Analysts believe this correction in the virtual asset market is a short-term adjustment following a rapid price surge. Since the beginning of the year, virtual asset prices have risen sharply in a short period, triggering a wave of profit-taking sell-offs that pushed the market downward.
According to data from the global cryptocurrency market tracking platform CoinMarketCap, Bitcoin fell over 2% yesterday, dipping as low as 90,629 USD during the session.
The CoinDesk 20 index, which tracks the performance of the top 20 cryptocurrencies, dropped nearly 4% during the same period, with XRP leading the decline, falling over 8%. Ethereum dropped 3.6%, despite major Wall Street firm Morgan Stanley announcing it would offer a spot Ethereum ETF, which failed to provide a price boost.
This crypto sell-off occurred as the Nasdaq index rose 0.5%; meanwhile, precious metals, which had seen strong gains earlier, reversed course—gold fell 1%, and silver dropped 5%.
Stocks related to 'Digital Asset Treasury' (DAT) did not strengthen noticeably despite MSCI's announcement Tuesday evening that it would 'temporarily not exclude Strategy (MSTR) from its index'.
Strategy performed relatively well, rising 1%, but most other stocks in the sector declined: Bitmine Immersion fell 6%, Sharplink Gaming dropped 2%, and XXI declined 5%.
Looking at the weekly chart, the ratio between MSTR and iShares Bitcoin Trust (IBIT) has rebounded near the 3 level for the second consecutive week, currently standing at approximately 3.11. In March 2024, this ratio found support near 3, then rose steadily to a peak of 9.5 in November 2024, coinciding with MSTR's all-time high stock price. Bulls will closely watch whether the 3 level can continue to serve as a support.
On Thursday (January 8), during the Asian session, Bitcoin attempted to hold the 91,000 USD mark after a sharp drop the previous day. Analysts believe this correction in the virtual asset market is a short-term adjustment following a rapid price surge. Since the beginning of the year, virtual asset prices have risen sharply in a short period, triggering a wave of profit-taking sell-offs that pushed the market downward.
According to data from the global cryptocurrency market tracking platform CoinMarketCap, Bitcoin fell over 2% yesterday, dipping as low as 90,629 USD during the session.
The CoinDesk 20 index, which tracks the performance of the top 20 cryptocurrencies, dropped nearly 4% during the same period, with XRP leading the decline, falling over 8%. Ethereum dropped 3.6%, despite major Wall Street firm Morgan Stanley announcing it would offer a spot Ethereum ETF, which failed to provide a price boost.
This crypto sell-off occurred as the Nasdaq index rose 0.5%; meanwhile, precious metals, which had seen strong gains earlier, reversed course—gold fell 1%, and silver dropped 5%.
Stocks related to 'Digital Asset Treasury' (DAT) did not strengthen noticeably despite MSCI's announcement Tuesday evening that it would 'temporarily not exclude Strategy (MSTR) from its index'.
Strategy performed relatively well, rising 1%, but most other stocks in the sector declined: Bitmine Immersion fell 6%, Sharplink Gaming dropped 2%, and XXI declined 5%.
Looking at the weekly chart, the ratio between MSTR and iShares Bitcoin Trust (IBIT) has rebounded near the 3 level for the second consecutive week, currently standing at approximately 3.11. In March 2024, this ratio found support near 3, then rose steadily to a peak of 9.5 in November 2024, coinciding with MSTR's all-time high stock price. Bulls will closely watch whether the 3 level can continue to serve as a support.