January 22 BTC Technical Trading Strategy (Price anchored at 89,950)

Core Tone

The daily chart is slightly bearish, with wide-range fluctuations on the 4H chart. Focus on buying low and selling high within the range. After a breakout, follow the trend with light positions, strictly controlling position size and stop-losses.

Key Price Zones

- Support Levels: First support at 89,000; strong support at 88,300-87,800 (breaking below opens downward space)
- Resistance Levels: First resistance at 90,500-91,000; strong resistance at 91,500-92,000 (stabilizing above indicates a short-term reversal)

Specific Trading Strategies

1. Range Trading Strategy (Priority Execution)

- Short Opportunities: Rebound to 90,500-91,000 zone, gradually build short positions
- Stop-Loss: 91,200 (exit after breaking resistance to avoid deep losses)
- Take Profit: First target 89,500; second target 89,000 (scale out in parts, secure profits)
- Long Opportunities: Price retraces to stabilize at 88,300-89,000 (showing bullish candle signals), lightly build long positions
- Stop-Loss: 87,700 (stop if breaking strong support, avoid holding through deep pullbacks)
- Take Profit: First target 89,800; second target 90,500 (reduce positions at resistance)

2. Breakout Trading Strategy (Follow the Trend)

- Upward Breakout: Price stabilizes above 91,000 with increased volume, follow the trend and go long
- Stop-Loss: 90,500 (exit if retest fails)
- Take Profit: 91,500-92,000 (take profits decisively at strong resistance)
- Downward Breakout: Price falls below 87,800 with sustained volume, follow the trend and go short
- Stop-Loss: 88,300 (exit if rebound fills the gap)
- Take Profit: 87,200-86,500 (take profits at key support levels)

Risk Control Rules

1. Single BTC position should not exceed 5%, avoid heavy positions during volatile ranges.
2. Limit individual trade stop-loss to 1.5%-2%, avoid blindly expanding stop-losses.
3. Monitor overall market sentiment; if US stocks or ETH break key levels, BTC may experience increased volatility. Prefer to wait or take profits early, avoid contrarian trades.