Bitcoins [BTC] The midweek correction from $94.7K to $90K again shifted market sentiment from a “neutral” to a “fear” level.
Sentiment recovered along with the price from late December, followed by renewed ETF inflows in the first two days of 2026. However, the daily net inflows of the ETFs turned negative on January 6 and 7, resulting in a total of $729 million in outflows.
Source: CoinGlass
But based on past sentiment, this was still a buying opportunity for Bitcoin. Especially if there is no major bearish catalyst or geopolitical event that turns this into “extreme fear.”
BTC falls with Asian stocks
But there was another interesting link with the Asian stock market.
Since mid-December, BTC has made most of its daily gains during the Asian trading sessions, only to sell off during US market hours.
Source: Velo
However, BTC’s mid-week pullback seemed to follow the latest correction in the Asian stock market.
The Nikkei and Nifty 50 both relaxed by more than 1% on January 8. BTC also fell 1.4%, barely holding the $90,000 support at the time of writing.
Source: BTC/USDT, TradingView
From a price chart perspective, BTC was still within the December price range of $80,000-$94,000. In the short term, defending the 50-day moving average (MA, $89.2K) could trigger another recovery towards $94K-$96K.
However, if support is broken, a decline to the lows of $84,000 or $80,000 could be feasible.
That said, the consolidation above $80,000 was healthy for a potential and constructive BTC recovery in 2026, from an on-chain perspective.
Bitcoin price recovery likely only if…
According to Glass junctionselling pressure and profit taking had decreased significantly by the end of 2025. Daily average realized profits fell from over $1 billion through most of the fourth quarter of 2025 to $183 million.
Source: Glassnode
The on-chain analytics firm noted that the selling relief, especially from long-term holders (LTH), was a crucial set-up for more upside momentum.
“The breakout in early January thus reflects a market that had effectively rolled back profit-taking pressure, allowing the price to move higher.”
Meanwhile, the company warned that further recovery could be confirmed if the short-term holder cost basis of $99.1K is recovered. Otherwise, if STH is not profitable again, they may sell in panic and extend the bear market.
“Without a decisive and sustained return to profitability, the likelihood of a further continuation of the bear market increases, making this a crucial metric to watch in the coming weeks.”
Final thoughts
- Bitcoin gave back January recovery gains but was still within December’s price range of $80,000 to $94,000
- The current sideways structure was constructive for a medium-term BTC recovery amid easing selling pressure, but only if $99.1K were recovered.