Master Discusses Hot Topics:

Trump's inauguration has landed, and the market's sentiment is slowly digesting it. As everyone knows, he didn't mention cryptocurrency during the inauguration ceremony, so there weren't too many expectations. Fortunately, the acting chairman of the SEC opened fire, which temporarily brought back some market sentiment.

However, Master believes that this positive news may not last long. The new legal framework still needs time to take shape, and there isn't much time left to fight for it; everyone can only prepare themselves.

Today, we will focus on Japan's upcoming interest rate hike. This rate hike is likely to be executed in January, with an increase of 25 basis points, raising the rate to 0.5%. Although the hike isn't significant, the yen remains the best borrowing asset, but the market's risk aversion sentiment still needs attention.

On the 23rd, Beijing time, everyone should be a bit cautious. This doesn't mean that prices will definitely fall, but if the market can release new positive news on the 22nd or 23rd, it may offset the expectations brought by the rate hike, and prices could continue to rise.

So the key in the next few days is whether there will be new good news, especially the policy direction from Trump that may affect the market. As for some friends asking Master, didn't everyone already anticipate Japan's rate hike? Doesn't that mean it's not a negative factor? This line of thinking is actually a bit flawed.

Although the market may have reacted early, a rate hike means a decrease in investor returns, and some investors may choose to exit, leading to reduced liquidity. While yen borrowing may not directly impact the crypto market, liquidity is interconnected; with less market liquidity, prices will naturally have a chance to correct.

On Friday, the Japanese monetary policy meeting has already set the probability of a rate hike at 99%, so once the result is out, the market may get a jolt. By then, the market on Thursday may start to react. Therefore, for the short positions in the next couple of days, it's best to keep them small.

However, if this rate hike does happen, it may be the last one in this round for Japan. Therefore, there will be short-term fluctuations, but it shouldn't have a significant impact on the bullish trend of Bitcoin. In the short term, it may actually present opportunities for low buying and bottom fishing.

After all, from the weekly and monthly charts, Bitcoin's upward trend remains very stable. January and February are still good times to go long, and the target line of 120,000 to 150,000 is still achievable. It's just that short-term fluctuations are large, so when trading trends, positions and leverage shouldn't be too high, and ultra-short-term contract trading should also be defended well.

Back to Bitcoin's data, although there have been significant fluctuations in the last 24 hours, early investors remain optimistic. Most of the trading volume in the market comes from short-term investors in the last two days. However, this new high is built on the expectation of a power transition, so this rise hasn't triggered too much fear of heights.

On the contrary, there is still some anticipation; what the market needs is a greater release of sentiment. Especially if Trump can talk about Bitcoin's strategic reserves, that would mark the beginning of a big market.

In terms of major support levels, there hasn't been much change; around 95k remains the strongest support. Holders have not significantly exited and are likely still waiting for a larger rise. Therefore, the current price stability is still good; unless those waiting investors can't hold on any longer, it may trigger larger fluctuations. In any case, the core of trading is still making money; we should seize the opportunities the market provides!

Master Looks at Trends:

Resistance Levels Reference:

First Resistance Level: 108200

Second Resistance Level: 106200

Support Levels Reference:

First Support Level: 104200

Second Support Level: 102300

Today's Suggestions:

If Bitcoin's price consolidates at the current level and breaks through the high point of 106.2K at the close, then further increases can be expected. The probability of breaking through resistance and setting a new high is increasing, so it's very important to enter at a lower average price as much as possible in ultra-short-term trades.

Additionally, when in the breakout area, the breakout area can be converted from resistance to support for operations. If the price adjusts within the consolidation range and holds the first support level, it can be seen as an entry opportunity, while observing the trend of the 20-day moving average.

Against the backdrop of potentially setting a new high, the price is likely to consolidate and absorb chips before rebounding. Instead of chasing the rise, it’s better to expect a consolidation trend in the range of 104.2K~106.2K and look for entry opportunities.

Currently, every word from Trump could have a huge impact on Bitcoin, so attention should be paid to news and market dynamics. From the perspective of rebounds, look for entry opportunities during pullbacks. Maintain a rebound view for the day, setting 104.2K~106.2K as an important consolidation range, and pay attention to changes in the 20-day moving average on the 4-hour chart.

1.22 Master’s Band Strategy:

Long Entry Reference: 104200 light long; if it dips to 103300-102300 range, go long directly; target: 106200-108200

Short Entry Reference: 107000-108200 range light short; target: 106200-104200

This article is exclusively planned and published by Master Chen (public account: Coin God Master Chen). Master Chen is the same name across the internet. For more real-time investment strategies, solutions, spot trading, short, medium, and long-term contract trading techniques, operational skills, and knowledge about candlesticks, you can add Master Chen for learning and communication. A free experience group for fans has been opened, along with community live broadcasts and other quality experience projects!

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