On a macro level, positive signals continue to emerge. The latest US CPI data remains stable and slightly soft, with core CPI below expectations, significantly boosting market expectations for the Federal Reserve to continue cutting interest rates in 2026. The increased rate cut expectations are likely to enhance liquidity flows, leading to a broad rebound in risk assets. Bitcoin, as a "high beta" asset, reacts most intensely and has become the focal point of capital chasing opportunities.

In short-term trading, recent days have seen hundreds of millions of dollars in short positions being liquidated, especially above 95k, creating a "long squeeze" effect, with prices being violently driven higher. Many traders chased shorts below 94k and suffered heavy losses; the market is both brutal and full of opportunities.

From a technical perspective, Bitcoin quickly moved away from oversold territory since early January, breaking through the key resistance zone of 91k - 94k. Market sentiment rapidly shifted to greed, with short-term momentum remaining strong.

However, the crypto market remains highly volatile, and future trends will depend on close monitoring of macroeconomic data and policy changes. If you find this analysis useful, please follow, bookmark, like, and share your thoughts in the comments!