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 recent months amid a backdrop of converging volatility, deleveraging, and a lack of risk appetite. From the perspectives 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 becomes conservative towards the end of the year, with a decline in risk appetite. 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 no clear consensus on upward movement yet; the market may shift from a phase of "downside risk dominance" to a phase of "downside limited, upside still needs 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%.