2026-01-04 20:20:30

January 5th Bitcoin and Ethereum Market Analysis

Bitcoin started to pull back after reaching 91,779.7. This price level forms a clear resistance on the 1-hour chart, and there is also resistance from the upper band of the Bollinger Bands. From the indicators, the MACD's DIF and DEA are still operating in the negative zone. Although the price has made a new high, the MACD has not risen in tandem, which is a typical top divergence phenomenon. If the price rebounds later and the red histograms shrink or the green histograms begin to expand, that is a good signal to add to short positions.

On the capital side, signs of decay are already evident. If the trading volume continues to shrink and the number of sell orders increases, it essentially confirms the trading logic for short positions. In the short term, the 90,000 level is an important support.

Bitcoin trading strategy: Consider shorting on rebounds to the 91,800-92,500 range, with the lower target focusing on the 90,000-88,000 range.

Ethereum trading strategy: Consider shorting on rebounds around 3,180-3,250, with the downside space looking at 3,050-2,850.

BTC-1,21%

ETH0,89%

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BearMarketSurvivor

· 14h ago

Bearish divergence always sounds promising, but in the end, it still depends on the market's mood. --- Can we hold the 90,000 level? It feels as fragile as my wallet. --- Short position setup sounds good, but I'm afraid a quick reversal could lead to bullish buying pressure, classic move. --- A true signal is when the MACD green bars expand; it's too early to say anything now. --- Signs of capital decay? I see many increasing their positions. Analysis and reality are always opposite. --- Let's wait and see. If the 91,800-92,500 range can hold, then we'll talk. Making conclusions now is too reckless. --- Can Ethereum drop to 2,850? My holdings are crying already. Hope it doesn't really fall that much. --- Volume shrinking and sell orders piling up—sounds like the bears are ready to load their magazines.

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WagmiOrRekt

· 01-04 20:50

Bullish divergence again, are we about to get cut again?

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OldLeekMaster

· 01-04 20:49

I’ve seen the top divergence signal several times, and each time I didn’t fully catch the move. This time, it still depends on the trading volume.

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DEXRobinHood

· 01-04 20:48

This divergence, the short position timing is almost here. If 91800 can't be broken, it feels like it's going to drop.

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FloorSweeper

· 01-04 20:44

Top divergence is something I've seen too many times. The key is whether the funding situation is truly weakening. Hmm, the 91,800 price level is indeed worth trying to short, but I'm just worried about a rebound. Shrinking trading volume is the real signal; everything else is false. Can Ethereum drop to 2850? That's a bit uncertain.

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GateUser-c802f0e8

· 01-04 20:43

The bullish divergence is so obvious, it feels like it's going to crash.

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NFTFreezer

· 01-04 20:36

The classic bearish divergence is back again. Every time it sounds convincing, but in the end, it still gets broken through.

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StablecoinArbitrageur

· 01-04 20:36

tbh the macd divergence angle here is interesting but you're leaving out order book depth analysis entirely. classic mistake.