Quick Breakdown
- Bitcoin continues to trade below its 21-week moving average, a level widely used to distinguish between bull and bear market phases.
- Analysts note repeated rejection at this level, reinforcing the view that the market remains in a corrective phase despite short-term rebounds.
- While tactical rallies may occur, broader momentum suggests downside risk persists until Bitcoin can reclaim the 21-week average decisively.
Bitcoin is extending its corrective phase after failing to reclaim a closely watched technical level that has historically separated bull markets from prolonged downturns. Market data shows the asset remains below its 21-week moving average, reinforcing bearish conditions despite short-lived rebounds in recent weeks.
Traders and analysts have long used the 21-week moving average as a high-level signal for Bitcoin’s market regime. When prices trade above it, momentum typically favours sustained upside. When prices fall below and fail to recover, deeper corrections often follow. Bitcoin’s recent price action appears to be aligning with that historical pattern.
📊Today’s #Matrixport Daily Chart – January 26, 2026 ⬇️
Below the Line: Why Bitcoin Remains in Correction#Matrixport #Bitcoin #BTC #CryptoMarkets #BitcoinAnalysis #TechnicalAnalysis #MovingAverage #RiskManagement pic.twitter.com/xiLJaeh2u6
— Matrixport Official (@Matrixport_EN) January 26, 2026
Rejection at the 21-week average signals weak momentum
Bitcoin briefly attempted a recovery toward the 21-week moving average in late December, following a bounce from lower levels. However, that rally stalled and was decisively rejected near the trend line, suggesting sellers remain firmly in control. Since then, price action has stayed compressed below the level, indicating a lack of follow-through from buyers.
According to independent market analysis, the rejection reinforces the idea that the current market structure remains corrective rather than transitional. While volatility has cooled compared to earlier sell-offs, the failure to break above the moving average suggests the broader trend has not yet shifted back in favour of bulls.
Tactical bounces are possible, but trend remains corrective
Analysts note that Bitcoin can still experience short-term rebounds within a corrective phase, particularly as oversold conditions develop. However, these moves are increasingly being viewed as tactical rather than the start of a sustained recovery. As long as Bitcoin trades below the 21-week moving average, upside attempts are likely to face resistance.
Historically, similar setups have preceded extended consolidation or further downside before a clearer trend reversal emerges. For now, the market appears to be prioritizing risk reduction over aggressive accumulation.
Previously, Matrixport noted that bitcoin’ market sentiment showed early signs of stabilization, with downside risk gradually fading.
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