January 22 Bitcoin Market Outlook

After dropping to a low of 87,200, Bitcoin experienced a rebound, but the price remains constrained by the previous downtrend zone. The 24-hour high of 90,500 failed to break through effectively, highlighting that selling pressure above is still strong. During the rebound, trading volume continued to decline, indicating that the bulls are only passively supporting the price without active buying intent. Such weak rebounds often signal the beginning of a new downtrend.

From the 4-hour technical chart, the Bollinger Bands indicator shows that the price is still operating below the middle band, which is continuously turning downward, indicating that the overall trend remains bearish. The upper band also forms a clear resistance level. Regarding the KDJ indicator, the J line has risen into the overbought zone, and the golden cross between the K and D lines is rapidly weakening, potentially forming a death cross and diverging downward at any time.

Bitcoin Trading Strategy: Short near 90,500-91,200, targeting 89,100-87,800.