Matrixport: Bitcoin continues to decline, market sentiment is cautious

Matrixport released its latest weekly report, indicating that Bitcoin has been on a downward trend since mid-October 2025, with market sentiment becoming cautious.

As the "four-year cycle" narrative resurfaces, most traders expect Bitcoin to remain under pressure in 2026. Key observation points: Bitcoin has continued to face pressure in an environment of converging volatility, deleveraging, and lack of risk appetite over the past few months.

From the perspective of derivatives, ETFs, and technical indicators, the market position structure has changed. The largest Bitcoin options in history are about to expire, and the distribution of strike prices has become an important indicator for observing market pressure and opportunities.

Market outlook: The market typically tends to be conservative towards the end of the year, with a decrease in risk appetite for funds. After entering the new year, as capital is reallocated and risk budgets are restored, market sentiment may accelerate its reversal. Technical structures indicate that downward momentum is marginally slowing, but there is still no clear consensus on upward movement. The market may shift from a phase of "downside risk dominance" to a phase of "downside limited, upside still needing a catalyst." Current Bitcoin prices and weekly stochastic indicators suggest that the market may have entered an oversold region, with the stochastic indicator dropping to 17%.