The crypto market has never been a straight line; fluctuations are the norm—what matters is whether you can interpret the signals behind them.

Recently, statements from Federal Reserve officials have drawn attention: the current employment situation is not yet sufficient to support a rate cut in January. This signal is unexpectedly direct, and market expectations of "liquidity easing" are gradually falling short. Once risk-averse funds accelerate their exit, risk assets like BTC are likely to face short-term pressure.

From a technical perspective, the $87,898 level is considered a critical threshold. Multiple attempts to break through have failed to succeed, and trading volume has actually shrunk—this phenomenon is hard to explain as mere coincidence. The strong support below at $85,400 is notable, but even more concerning is the RSI indicator hovering around 51, which in itself indicates a neutral zone with hidden risks. If the price falls below $86,000, the bearish advantage will clearly strengthen, and the defense line at $85,400 may become the last bottom for the bulls.

Interestingly, during this period, the main funds have frequently tested the $88,000 level, with obvious signs of trap trading. Retail investors chasing highs and then being hammered out is a recurring scenario. This wave of correction may essentially be the main players clearing out short-term positions and preparing for a subsequent rally. Before a real surge, a deep correction often occurs.

For holders, if the price drops below $86,000, consider gradually positioning in the $85,400–$85,073 range. Setting a stop-loss is crucial—if it falls below $85,000, be alert, as this could indicate further downside risk. This roughly $2,000 adjustment might be just the space needed for the next upward move.