Matrixport: The current trend model is still bearish, but if it breaks through $103,000, it will turn bullish

On January 17, Matrixport stated that according to Bollinger Bands measurements, the lower band of Bitcoin is gradually expanding, indicating an increased risk of decline. However, after a reversal, it may provide a favorable risk/reward entry point for bulls. Currently, the greed and fear index is close to the critical 10% level and the 30-day rolling return rate is near -10%. These indicators usually suggest that the downward trend may slow down or reverse.

Although Bitcoin still remains above its 21-week moving average technically in a bull market, momentum has turned bearish. The minting and trading volume of stablecoins have significantly decreased along with DeFi activity; Bitcoin's dominance has risen as funds flow back from altcoins to Bitcoin while speculative sentiment weakens.

Historical data shows that when Bitcoin rises more than 40% within 30 days, it usually tops out or enters a consolidation phase. At present, trend models remain bearish but would turn bullish if breaking through $103,000. As consolidation time extends, bullish signal trigger points decrease which increases reversal possibilities.

Bitcoin currently attempts to maintain at $90k level mainly driven by funds flowing back from altcoins rather than new capital inflows. Market trends are driven by momentum so traders need to manage risks carefully and look for opportunities amidst volatility. Despite overall market weakness due to lackluster momentum , bitcoin exhibits resilience due its relative safety.