BTC faces a key support level test, market sentiment turns to panic zone, and may face greater volatility in the short term

On January 9th, trader Eugene Ng Ah Sio pointed out on the X platform that mainstream coins such as BTC, ETH, and SOL are re-testing the low point of December 5th, 2024, which may be a turning point for market participants to panic. The current key support level for BTC is near $85,000. Once this support is breached, it may trigger a larger-scale sell-off.

 

Meanwhile, the latest data released by Sentiment shows that in the past 30 days, the average return rate of active wallets of major cryptocurrencies such as BTC, ETH, ADA, and DOGE has been in negative territory, which means that most market participants are operating in a state of loss. This "blood-filled" market atmosphere is usually seen as a potential layout opportunity for long-term investors, but the current panic may further exacerbate volatility.

 

Eugene also mentioned that many investors' psychological expectations for the "bull market in January" are gradually weakening. Most people are beginning to realize that the assets they have not sold may have gone through a complete cycle of ups and downs, with account profits being returned or even falling into losses. Sentiment analysis suggests that investors should not rely solely on these signals to expect an immediate market reversal.