Analyst: Bitcoin's upward momentum has weakened, and a multi-week sell-off may occur

in the afternoon of January 9th Beijing time, the virtual currency market experienced a sell-off, causing a significant drop in the price of Bitcoin. As of the time of writing, Bitcoin has fallen below the integer mark of $93,000 and is currently trading at $92,938 per coin, with a daily decline of 2.7%. The violent fluctuation of the currency price has affected the market, and CoinGlass market data shows that in the past 24 hours, more than 160,000 people have been liquidated in the virtual currency market, with a total liquidation amount of $482 million (approximately RMB 3.53 billion). Industry insiders believe that the latest economic data released by the United States suggests inflation stickiness, which has raised doubts in the market about the possibility of a Fed rate cut later this year. According to on-chain data, the leverage ratio in the current virtual currency market has approached the historical high point of 2021. The high leverage environment greatly increases the market's vulnerability. Once the market shows any signs of turbulence, investors may quickly withdraw, leading to a spread of price crashes and liquidation waves. Katie Stockton, a top Wall Street technical strategist, recently stated that the upward momentum of Bitcoin has weakened and there may be several weeks of continued selling.