As of 6:00 PM on January 2, 2026, the crypto market finally took a breather. Bitcoin has been testing the 88,000-89,000 USD range back and forth, while altcoins have started to show some agitation. The overall market panic sentiment has slightly eased from a near-dead state.

From a numerical perspective, Bitcoin is currently at $88,678, up 1.3% in 24 hours. But don’t be fooled by this increase—after crashing from the peak of $126,000 in October 2025, it has already fallen by nearly 30%. The current support is at $84,000-$87,000, with resistance at $90,000.

Ethereum is performing slightly better, at $2,980, up 2.1%, with a relatively stable trend. Altcoins are showing some strength: Cardano (ADA) surged to $0.3553 (+6.3%), Sui (SUI) jumped to $1.46 (+4.5%), PEPE skyrocketed 21% to $0.0548, and tokens like RIVER have even multiplied fivefold in a week.

On the technical side, the fear and greed index is now at 28, a slight improvement from yesterday but still in the fear zone. Good news is that leverage heat is cooling down, with open interest falling back to $128 billion. The recent 24-hour liquidation amount was $121 million, mainly from long positions being liquidated.

Institutional players are buying on dips, and whale addresses are increasing their holdings. The January effect, speculative enthusiasm for altcoins, and expectations of rate cuts are supporting the market. But risks remain—Bitcoin’s rebound lacks strength, trading volume is sluggish, regulatory uncertainties persist, and high leverage can amplify volatility.

What’s next? In the short term, focus on the $90,000 level. If broken, there’s a chance to test $95,000-$100,000; if $87,000 support fails, the market may continue to dip toward $84,000. In the medium term, if Bitcoin can hold above $90,000 and ETF inflows continue, a target of $100,000-$105,000 is reasonable. Otherwise, expect continued consolidation with potential pullbacks.

Trading strategy: Consider reducing positions on Bitcoin near the $89,000-$90,000 range, and buy the dip in the $84,000-$87,000 zone in stages, with a stop-loss above $90,500. For Ethereum, watch the $3,000 resistance; if broken, add small positions with a stop-loss below $2,900.