Yesterday, Bitcoin showed strong momentum, with a beautiful large bullish candle on the daily chart. The highest touch during the session was $96,777, with an intraday increase of over 5%. It broke through the key level of $96,000 in one go, with a 24-hour gain fluctuating between 4.7% and 5.18%.

The logic behind this rally is actually quite clear. First, the US December core CPI data was released, showing a year-over-year increase of 2.6%, better than the market expectation of 2.7%, which directly reinforced expectations of interest rate cuts and boosted risk assets accordingly. Second, from a capital perspective, whales are increasing their holdings, institutional funds are continuously flowing in, and the funding rate for perpetual contracts has started to rise, creating an increasingly bullish market sentiment. Technically, Bitcoin broke through the critical resistance zone of 94500-95000 with increased volume, triggering FOMO in the market, and short positions faced liquidation.

The key levels to remember now are: resistance at 96500 (yesterday’s high), 98500 (upper channel boundary), and 99000 (5-day moving average on the monthly chart); support at 94500 (previous high platform), 92500 (midline of the channel), and 91800 (short-term support).

From a trading perspective, in the short term, you can try long positions with light positions within the 94500-92500 range, with a stop-loss below 91800; for medium-term, it depends on whether 96000 can hold steady. If it breaks through effectively, look towards 98500-99000. But if it pulls back and falls below 92500, be cautious that this rebound may be ending. Lastly, a reminder that cryptocurrency is highly volatile, and leverage trading must strictly control position sizes.