Despite Bitcoin’s Price Stabilization, Bearish Pressure Persists – Market Analysis – 2026-01-21

Market Analysis

Signs of slight improvement are emerging in the cryptocurrency market today; however, the overall environment remains uncertain and under pressure. Challenges in the global economy, coupled with rising uncertainties, have hindered market sentiment from stabilizing, prompting investors to adopt a cautious stance.

Bitcoin has experienced notable volatility over the past five days, reflecting a fragile and pressured state. Closing at 95,550.94 USDT on January 16, the price gradually declined to 88,427.66 USDT by January 20. The 7-day Relative Strength Index (RSI) dropped significantly from 68.98 to 26.80, clearly signaling market weakness and a bearish trend. Similarly, the 14-day Money Flow Index (MFI) fell from 58.72 to 44.60, indicating reduced liquidity and waning investor enthusiasm. The Fear & Greed Index also declined from 49 to 32, highlighting growing apprehension among market participants.

Looking at the Bollinger Bands, Bitcoin’s price approached the lower band on January 20, suggesting an oversold condition. This may point to a potential short-term reversal or recovery, although confirmation would require additional positive signals. The moving averages, particularly the 7, 14, and 21-day Hull Moving Averages (HMA), continue to trend downward, reinforcing the current bearish pressure. Furthermore, the 50 and 100-day moving averages are turning downward from above, indicating a weakening trend in the medium term.

In terms of support and resistance levels, the zone between 87,952.01 and 84,667.03 USDT (S1) stands out as the first critical support area in the event of further price declines. Should this level be breached, the next support range lies between 84,474.69 and 83,949.52 USDT, followed by a stronger support zone from 78,595.86 to 76,322.42 USDT (S3). On the upside, the resistance range between 88,485.49 and 89,567.75 USDT (R1) is a key hurdle; surpassing it would signal positive momentum for the market. Beyond that, the zone from 92,513.38 to 94,005 USDT (R2) serves as medium-term resistance. Additionally, the psychological resistance at 90,000 USDT remains a critical level that could influence market direction.

Overall, Bitcoin’s current condition reflects a phase of softness and pressure, where bearish sentiment dominates despite some positive movements. Uncertainties in the global economy and subdued investor confidence continue to restrain the market. While the proximity to the lower Bollinger Band hints at a possible short-term rebound, moving averages and other technical indicators still support a bearish outlook. Investors are advised to closely monitor key support and resistance levels and stay attuned to global economic developments to make informed decisions.

Data Summary

• 1. Time:
  2026-01-21 – 00:00 UTC
• 2. Prices:
  Open: 92630.99000000
  High: 92870.00000000
  Low: 87895.98000000
  Close: 88427.66000000
• 8. Supports:
  S1: 87952.01000000 – 84667.03000000
  S2: 84474.69000000 – 83949.52000000
  S3: 78595.86000000 – 76322.42000000
• 9. Resistances:
  R1: 88485.49000000 – 89567.75000000
  R2: 92513.38000000 – 94005.00000000
  R3: 96551.01000000 – 97463.95000000
  R4: 103262 – 104550
• 10. Psychological Support:
  80000.00000000
• 11. Psychological Resistance:
  90000.00000000
• 3. Last 5 days’ closing prices:
  2026-01-16: 95550.94000000
  2026-01-17: 95147.77000000
  2026-01-18: 93673.14000000
  2026-01-19: 92631.00000000
  2026-01-20: 88427.66000000
• 4. Volume:
  BTC: 22007.3261
  USD: $1989676668.5942
• 5. Number of trades:
  6064031
• 6. Indicators:
  RSI: 26.8000
  MFI: 44.6000
  BB Upper: 97247.85000000
  BB Lower: 87092.05000000
• 7. Moving Averages:
  SMA:
  7=93998.16000000
  14=92808.65000000
  21=92169.95000000
  30=90849.74000000
  50=90379.49000000
  100=95921.18000000
  200=105327.56000000

  EMA:

  7=92529.83000000
  14=92560.30000000
  21=92130.65000000
  30=91788.79000000
  50=92233.28000000
  100=95685.41000000
  200=99015.75000000

  HMA:

  7=89849.83000000
  14=93933.69000000
  21=94853.86000000
  30=94954.15000000
  50=94042.57000000
  100=89018.72000000
  200=84531.54000000
• 12. Funding Rate:
  0.0057%
• 13. Open Interest:
  94014.5150
• 14. Fear & Greed Index:
  32 (Fear)

Disclaimer: This market analysis is generated by AI based on historical BTC data and sentiment indicators. Use it as a reference, not financial advice.