According to a chart released Odaily by Matrixpot, the new year has started relatively calmly, but market sentiment is gradually improving. Notably, their 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. In this context, the market is more likely to enter an upward correction, 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, we pointed out in our weekly "Matrix on Target" report that a larger-scale correction was highly likely. Entering 2026, the environment for a long-only strategy may still be unfavorable; the ability to maintain discipline and capture market swings in a more tactical manner may become the key to widening the profit gap.
