1.19 Midday Market Analysis
This morning's sharp decline in Bitcoin was not primarily driven by technical factors but was triggered by a surge of sentiment fueled directly by macro news, with Trump once again becoming a significant variable.
Over the weekend, he suddenly issued a tariff ultimatum to 8 European allies, demanding they take sides on the Greenland issue, or face tariffs of up to 25%. The market immediately linked this to the potential restart of trade wars, turbulence in NATO relations, and a possible return to confrontation in the global trade order, causing risk appetite to rapidly cool down. As a high-volatility risk asset, cryptocurrencies were among the first to be sold off by funds.
Meanwhile, the future candidate for the Federal Reserve chair also became uncertain. The previously favored Haruhiko Kuroda might remain at the White House, making the future direction of monetary policy unclear. For bullish traders, uncertainty itself is bearish, and institutional funds often choose to withdraw and wait on the sidelines.
Under these two pressures, Bitcoin broke below a key support level, triggering stop-losses and liquidations of many high-leverage long positions, creating a chain of selling pressure, which ultimately led to a rapid decline in early trading.
BTC Trading Advice: Short around 93000-93500, stop-loss above 94000, take profit at 91800-90500
ETH Trading Advice: Short around 3230-3260, stop-loss at 3300, take profit at 3180-3120