On Tuesday morning, most cryptocurrencies declined, continuing Monday's downward trend, driven by widespread risk aversion sparked by concerns over new European commodity tariffs. This sell-off wiped out approximately $100 billion in market capitalization and triggered a large number of liquidations. Meanwhile, the options market actively engaged in de-risking operations. Shiba Inu's open interest plummeted 27% on Monday but then rebounded slightly by 0.27% to $84.5 million, despite a roughly 30% decrease in spot and derivatives trading volume. SHIB fell 0.31% within 24 hours to $0.000007843, with traders appearing cautious, awaiting more definitive catalysts. The recent trend in the altcoin market is largely considered to depend on Bitcoin's next move.

Nighttime Positioning

#BTCMarketAnalysis Bitcoin Pullback Analysis – January 2026 The cryptocurrency market, led by Bitcoin, is currently experiencing a healthy pullback following recent volatility and repeated failures to break through higher resistance levels. Bitcoin is trading in the $90,000 – $92,000 range, which is serving as a critical short-term support zone (current price hovering around $90,500 – $91,000). After a strong bullish run, BTC failed to hold above key resistance areas, and broader risk-off sentiment across global markets has driven prices lower. While this correction has erased a portion of the recent gains, Bitcoin remains significantly above its long-term historical averages. The current technical setup emphasizes the importance of patience and disciplined entries rather than chasing price action. Current Price & Market Structure - Bitcoin price: Approximately $91,000 (fluctuating between $90,500 – $91,000 based on latest data) - Major resistance zone: $94,000 – $96,000 – repeated selling pressure has appeared here - Overall structure: Price action suggests BTC is likely to remain range-bound between $88,000 and $96,000 in the near term, reflecting an ongoing battle between buyers and sellers. Potential Buy Zones (Entry Planning) Instead of impulsive buying during the decline, focus on key support levels with proper risk management. 1. Near-Term Support (Aggressive Entry) $90,000 – $92,500 This area has recently attracted buyers. If price holds and shows signs of stabilization (rejection wicks, bullish engulfing candles), it can be considered for short-term or partial entries. 2. Better Risk-Reward Zone $88,000 – $89,500 A deeper pullback into this region typically offers cleaner setups and significantly improved risk-to-reward ratios, especially when accompanied by increasing buying volume. 3. Stronger Historical Support (Conservative Entry) $85,000 – $87,500 A well-established demand zone from previous cycles. More cautious traders may prefer waiting for clear confirmation here before entering positions. 4. Deep Correction Opportunity $80,000 – $82,000 If bearish momentum accelerates, this becomes a major structural support level. It represents a high-conviction long-term entry zone for investors comfortable with elevated volatility. How Deep Could the Pullback Go? - Moderate scenario: Holding above $88,000 – $90,000 keeps Bitcoin in consolidation or sets up a short-term bounce. - Deeper correction: A decisive break below $85,000 opens the path toward $80,000 – $82,000. - Extreme bearish case: Only if major supports fail would price extend toward $74,000 – $75,000 — currently considered a low-probability outcome. Most probable downside path: $88,000 → $85,000 → $80,000 Strategy & Risk Management - Always use stop-losses (e.g., entry near $88,000 → stop below $85,000). - Scale into positions gradually instead of going all-in at one level (example: entries at $92k, $89k, $86k). - Wait for confirmation signals: bullish candle patterns, strong rejection wicks, and clear volume expansion before adding exposure. Upside & Downside Targets If price reverses higher (bullish scenario): - First resistance: $94,000 – $96,000 - Break above this zone would likely trigger momentum toward the psychological $100,000+ level. If pullback continues (bearish scenario): - $88,000 - $85,000 - $80,000 - Deeper levels only in extreme bearish conditions. Summary Bitcoin is currently consolidating around the critical $90,000 – $92,000 support area. Depending on your risk tolerance, the most attractive buy zones are clustered around $92,000, $89,000, and $86,000. A failure of major supports could see the correction extend toward $80,000. In the present environment, disciplined risk management, patience, and waiting for confirmation signals remain far more important than chasing price. Volatility is elevated — stay calm and trade with a plan. 🚀