Bitcoin’s [BTC] mid-week correction from $94.7K to $90K shifted market sentiment from a “neutral” to a “fear” level again.
The sentiment recovered along with the price from late December, followed by renewed ETF inflows in the first two days of 2026. However, the ETFs’ daily net flows turned negative on the 6th and 7th of January, resulting in a total of $729 million in outflows.
But based on past sentiment levels, this was still a buy opportunity for Bitcoin. Especially if there is no major bearish catalyst or geopolitical event that flips it into ‘extreme fear.’
BTC falls with Asian stocks
But there was another interesting link to the Asian stock market.
Since mid-December, BTC has recorded most of its daily gains during the Asian trading sessions, only to sell off during U.S. market hours.
However, mid-week BTC’s retreat appeared to track the latest correction in the Asian stock market.
The Nikkei and Nifty 50 both eased by over 1% on the 8th of January. BTC also slipped 1.4% and was barely holding the $90K support at press time.
From a price chart perspective, BTC was still within the December price range of $80K-$94K. In the short-term, defending the 50-day Moving Average (MA, $89.2K) could trigger a rebound towards $94K-$96K again.
However, if the support is cracked, dropping to the range lows at $84K or $80K could be feasible.
That said, the consolidation above $80K was healthy for a potential and constructive BTC rebound in 2026, from an on-chain perspective.
Bitcoin price recovery likely only if...
According to Glassnode, the selling pressure and profit-taking seen in late 2025 had eased significantly. The daily average Realized Profit has dropped to $183 million from over $1 billion seen during most of Q4 2025.
The on-chain analytics firm noted that the selling relief, especially from long-term holders (LTH) was a crucial setup for more upside momentum.
“The early-January breakout thus reflects a market that had effectively reset its profit-taking pressure, allowing the price to move higher.”
Meanwhile, the firm cautioned that further recovery could be confirmed if the short-term holder’s (STH) cost basis of $99.1K is reclaimed. Otherwise, if the STH isn’t back to profitability, they may panic sell and extend the bear market.
“Without a decisive and sustained return to profitability, the probability of further bear market continuation increases, making this a critical metric to monitor in the weeks ahead.”
Final Thoughts
- Bitcoin gave back January recovery gains but was still within the December price range of $80K-$94K
- The current sideways structure was constructive for a mid-term BTC rebound amid easing selling pressure, but only if $99.1K if reclaimed.
