On January 5, Bitcoin extended its rebound during Asian trading hours, with prices climbing steadily, drawing market attention to a potential reversal in the short-term trend. EasyMarkets noted that the current price is on track to record five consecutive days of gains, a notably strong performance not seen in nearly three months, indicating a gradual recovery in market risk appetite.
From a technical chart perspective, Bitcoin's price swiftly ascended from around $91,400 to above $92,500, even testing the $93,000 level intraday. Concurrently, other major crypto assets like XRP, Solana, and Ethereum also strengthened, with overall gains concentrated between 0.7% and 1%. EasyMarkets believes this "synchronized recovery" pattern typically signifies that capital is not merely making isolated bets but reflects a systemic improvement in sentiment across the entire cryptocurrency market.
In the preceding period, the market was persistently affected by year-end tax-loss selling, with many investors opting to realize losses to optimize their financial structures, leading to an overall subdued performance for Bitcoin in December. As the new trading cycle commenced, such selling pressure has noticeably diminished. EasyMarkets stated that with the easing of selling pressure, the operational flexibility for institutional and trading funds has increased, creating conditions conducive to a price rebound.
From a broader asset allocation perspective, the recent simultaneous rise in various asset classes, including precious metals, indicates that the market is reassessing the risk environment. Against this backdrop, Bitcoin is gradually being viewed by some capital as an option possessing safe-haven or store-of-value attributes. EasyMarkets considers that this role transformation helps enhance Bitcoin's appeal within multi-asset portfolios, particularly during phases of heightened uncertainty.
On a technical level, as long as Bitcoin's price remains above the 21-day exponential moving average, the short-term structure continues to favor the bulls. EasyMarkets indicated that sustained inflows into ETFs provide additional support for the market, with the scale of recent single-day net inflows significantly amplifying, suggesting that medium- to long-term capital is becoming more accepting of the current price range.
In summary, after undergoing a year-end adjustment, Bitcoin is gradually regaining its upward momentum. EasyMarkets believes that, provided the trend remains intact, the convergence of market sentiment, capital flows, and technical structure forms a foundation for Bitcoin to maintain a volatile yet slightly stronger trajectory in the short term, though investors should still remain vigilant about the risks of amplified volatility.
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