PANews reported on January 17 that Matrixport stated that according to the Bollinger Bands measurement results, the lower line of Bitcoin has gradually expanded, indicating an increased risk of decline, but may provide a favorable risk/reward entry point for bulls after a reversal. Currently, the Greed and Fear Index is close to the key 10% level, and the 30-day rolling return rate is close to -10%. These indicators usually indicate that the downward trend may slow down or reverse.

Although Bitcoin is still above the 21-week moving average and is technically in a bull market, the momentum has turned bearish. Stablecoin minting and trading volumes have dropped significantly, DeFi activities have decreased, Bitcoin dominance has risen, funds have flowed back from altcoins to Bitcoin, and market speculative sentiment has weakened.

Historical data shows that when Bitcoin rises more than 40% in 30 days, it usually peaks or enters a consolidation phase. Currently, the trend model is still bearish, but it will turn bullish if it breaks through $103,000. As the consolidation time increases, the trigger point of the bullish signal decreases, increasing the possibility of a reversal.

Bitcoin is currently trying to maintain the $90,000 level, mainly driven by the return of funds from altcoins rather than new capital inflows. Market trends are driven by momentum, and traders need to manage risks carefully and look for opportunities in volatility. Despite the weak overall market momentum, Bitcoin has shown some resilience due to its relative safety.