Post-Christmas Quiet: Bitcoin and Ethereum Sentiment Returns to Calm, Prices Stagnate

After the Christmas holiday, Bitcoin and Ethereum experienced a brief rebound, but the upward momentum was extremely limited. Bitcoin once touched above $90,000 but then retreated below $87,000. Ethereum also showed weakness and failed to sustain its initial rally. Currently, Bitcoin is priced at $90.31K, down 0.76% in the past 24 hours; Ethereum is at $3.08K, down 1.14% in the past 24 hours. As extreme emotions dissipate, market participation has noticeably declined, and the overall sentiment has shifted from pessimistic to cautious waiting.

The Truth Revealed by Sentiment Data: The Rebound Lacks Follow-Through Confidence

According to social media sentiment data monitored by Santiment, the nature of this rebound warrants in-depth reflection. During the Christmas weekend, fear and uncertainty reached extreme levels, and the subsequent short-term rally appeared strong. However, as market sentiment gradually returned to rationality and normalized, the rally came to a halt.

This pattern reveals a key fact: this rise was driven more by short covering and tactical profit-taking rather than new buying pressure. Market participants did not turn bullish; instead, they chose to wait and see. The lack of confidence in the rebound ultimately led to sideways oscillation without direction.

Ethereum’s movement confirms this logic. ETH showed some improvement in sentiment during the rebound, temporarily outperforming Bitcoin, but optimism quickly faded. When the price failed to break above a key resistance level again, market sentiment shifted back to cautious and bearish. Currently, Bitcoin market sentiment data shows: 53.64% bullish, 46.36% bearish, indicating a slight divergence in the market.

Technical Clues: Compression Rather Than Breakout

From a 12-hour candlestick chart perspective, Bitcoin’s pattern does not show clear signs of reversal. Although it temporarily rebounded near $90,000, the price remains firmly constrained by a downward trendline. Recently, Bitcoin has been squeezed within a narrow range around the mid-$80,000s, forming a typical consolidation pattern.

Every attempt to break upward has been met with heavy selling pressure. This indicates that even though downside momentum has slowed, active supply remains high. There is a desire to go higher, but no strength to break through—this is the true picture of the current market.

Ethereum’s chart trend is similar to Bitcoin’s. Although ETH found support near the recent low of $2,930, it has yet to break through the descending resistance line overhead. The technical weakness further confirms the market’s lack of bullish consensus.

From Hot Trend to Calm: The Market Enters Wait-and-See Mode

Compared to previous recovery cycles, the current situation shows a clear difference. Historical experience suggests that a sustained upward trend usually requires two conditions: improved market sentiment and an effective breakout of price structure. Neither condition is present now.

On one hand, market sentiment has not warmed to a bullish atmosphere; on the other hand, the technical structure has not signaled a breakout. This leaves Bitcoin and Ethereum in an awkward middle ground—limited declines but no upward strength. The market seems to be waiting for a key catalyst to break the current deadlock.

It’s worth noting that the market has not entered a phase of widespread panic selling, which means the bottom support still exists. However, the presence of support does not equate to the start of a new rally. The current situation is better described as: market participants have chosen to temporarily retreat.

Outlook and Reflection

In the short term, with sentiment remaining neutral and prices compressed, the market is likely to wait for external catalysts before gaining a clear direction. Until then, small fluctuations may continue, but a trend is unlikely to form.

This post-Christmas movement reminds investors of an important fact: fear can trigger short-term rebounds, but rallies driven by fear rather than confidence are often fleeting and ultimately lead back to consolidation. When the market lacks substantial buying confidence, even multiple rebounds are insignificant and cannot alter the overall downward trend.

Key Takeaways:

• The post-Christmas rebound in Bitcoin and Ethereum is mainly sentiment-driven, not based on sustained buying power
• Technicals show prices are in a compression phase, lacking clear breakout signals
• The market has shifted from extreme pessimism to cautious neutrality but not to bullishness
• Future movement depends on external catalysts or waiting for a new market sentiment cycle