Analysis: Market sentiment is gradually stabilizing, and downside risks are easing.

BTC1,4%

PANews January 12 News, Matrixport’s analysis in today’s chart indicates that the start of the new year has been relatively calm, but market sentiment is gradually warming up. Notably, its self-developed “Greed and Fear Index” moving average has shown clearer signs of bottoming out. Historically, such signals often appear near Bitcoin’s cyclical lows. Against this backdrop, the market is more inclined to enter an upward correction, with the risk of continued decline decreasing. At the same time, it should be noted that this does not mean prices will quickly return to all-time highs. With sentiment stabilizing, downward risks are more likely to be contained within a manageable range. Looking back to late October, the institution previously indicated in that week’s “Matrix onTarget”>Weekly Report that a larger-scale correction was more likely. As we enter 2026, a purely bullish strategy environment may still not be advantageous; whether to maintain discipline and adopt a more tactical approach to capturing swings could become the key to widening the profit gap.

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