The first trading day of the new year, the cryptocurrency market did not bring any surprises. Bitcoin repeatedly oscillated between $87,000 and $89,000, while Ethereum struggled to hold around $3,000. This situation looks dead and dull, with the market seemingly welded into a narrow channel. Retail investors are staring at the screens, eager to smash their phones in frustration.
But there is a detail worth pondering—behind the surface dullness, funds in the AI concept sector are quietly flowing. If you understand the market charts, you can sense that the main players are secretly making moves and laying out their plans. This is no longer a game for small retail investors.
From a technical perspective, this pattern is somewhat dangerous. Last night, Bitcoin surged to $89,190, then turned around and dropped sharply, finally settling around $87,214. Ethereum's story is similar—rebounded from $3,025 but failed to hold, dropping to a low of $2,958, and now struggling around $2,980. This "rebound gets knocked down, then attempts to rally again" situation indicates a clear lack of buying momentum.
The most troublesome part is that the market has already formed a clear "lower high" structure. In other words, each rebound is weaker than the previous one, and the height of each bounce is lower. This suggests the market is shifting from an "upward testing" mode to a "downward defense" mode.
Currently, the $86,000 to $86,500 zone for Bitcoin and the $2,880 to $2,900 zone for Ethereum have become critical support levels. If these levels cannot hold, it’s time to reassess your holdings.