Analysis: Market sentiment is gradually stabilizing, and downside risks have eased somewhat.

PANews reported on January 12th that Matrixport's chart analysis today indicates a relatively calm start to the new year, but market sentiment is gradually improving. Notably, its proprietary "Greed and Fear Index" moving average has shown clear signs of bottoming out. Historically, such signals have often appeared near Bitcoin's temporary bottoming phase. Against this backdrop, the market is more likely to enter an upward correction phase, with the risk of further declines diminishing. However, it should be noted that this does not mean prices will quickly return to all-time highs. With stabilizing sentiment, downside risks are more likely to be limited to a manageable range.

Looking back to late October, the institution warned in its then-weekly report, *Matrix on Target*, that a larger-scale correction was highly likely. Entering 2026, the environment for a purely long-only strategy may still be unfavorable; the ability to maintain discipline and capitalize on market fluctuations with a more tactical approach may become the key to differentiating returns.