January 26 Market Outlook for Bitcoin

After a rapid decline, Bitcoin found strong support around 86,000. The current price has rebounded above 87,000. On the market level, the sharp drop earlier has fully released short-term panic selling pressure, and bottom-fishing funds have quickly entered the market, driving the price up. Such stabilization after a sharp decline is often an important signal of a short-term trend reversal!

Technically, the 1-hour chart shows that the Bollinger Bands indicator indicates the price rebounded from near the lower band, currently trading below the middle band. The short-term rebound momentum continues, with the upper band serving as the main resistance level. The KDJ indicator's three lines have quickly turned upward from the oversold area, with the J line breaking through the 50 level first, demonstrating that the short-term bullish strength is rapidly accumulating. Now is an excellent time to consider long positions.

Bitcoin trading suggestion: Pullback around 86,300-87,000, with an upward target of 88,500-90,000.