Last night’s Bitcoin performance indeed gave both bulls and bears opportunities. After a second rally failed to break through the previous high, short positions were established below 94,800. Aggressive traders probably took quite a bit of profit. On the bullish side, positions were opened at 91,500, with the lowest touching 91,300. Both sides successfully secured a profit of $5,000.

Currently, it is the morning of January 7th, Beijing time. The question at hand is: will it break new highs today or continue to test lower levels? Technical analysis provides us with many clues.

On the daily chart, the price retested the 5-day moving average and rebounded. The support role of this moving average needs close monitoring, and whether it can be effectively broken in the future is crucial. The four-hour chart is even more interesting — after rebounding from the 30-day moving average, the price rose to the 10-day moving average and then started to decline. The interaction between the 5-day and 10-day moving averages has always been a powerful tool for short-term trend judgment. Currently, the price is oscillating between the 10-day and 30-day moving averages, with Bollinger Bands showing signs of narrowing.

On the hourly level, Bollinger Bands are trending sideways downward, with short-term moving averages pointing down and a death cross signal. There is short-term support near the 120-day moving average below. On the MACD, the two lines on the hourly chart are flattening below the zero line, indicating increasing bearish momentum. The four-hour chart is more obvious — the two lines have crossed downward from above the zero line, with bearish momentum continuing to release. The RSI has entered oversold territory (around 13-14), which usually indicates a potential short-term rebound.

Overall, the recent trend leans towards sideways decline. Key resistance levels to watch are at 94,300, 96,700, and 98,800, while support levels are at 89,200, 86,600, and 85,100.