**Market Overview**

Entering the second week of January, the crypto market shows a moderate upward trend. Over the past 24 hours, the average increase of mainstream cryptocurrencies has reached 0.9%, with a more impressive weekly performance, accumulating a total increase of 3.42% last week. Interestingly, although altcoins have been somewhat sluggish in the short term, their weekly and monthly gains are actually quite substantial.

**Three Major Drivers of the Market**

The New Year effect is most evident. January is typically a period of reallocation in traditional finance, and the crypto market is no exception. Investors have ended the tax-loss selling wave at the end of 2025 and started shifting funds into the crypto space, which is directly reflected in the rebound of net inflows into Bitcoin spot ETFs, becoming a key support for this rally.

Technical factors are also favoring the market. XRP leads the gains with over 20% increase in 24 hours; mainstream altcoins like SOL are also performing strongly. Meanwhile, Ethereum’s Fusaka upgrade has been successfully completed, significantly improving network performance. These fundamental positives further ignite bullish sentiment in the market.

The popularity of meme coins remains high. This sector continues to attract capital attention and serves as an important market sentiment indicator.

**Risk Warning**

Behind the prosperity, dangers lurk. In the past 24 hours, a total of 106,873 traders faced liquidation, with a cumulative liquidation amount of up to $342 million. Long positions bore the brunt, with liquidations totaling $261 million; shorts were not spared, with liquidations reaching $80.61 million. The risks of leveraged trading are clearly evident.

**Mainstream Coins Technical Analysis**

BTC is currently quoted at 91101, with a 24-hour increase of 0.90%. The recent spike pattern perfectly matches the technical characteristics of a descending wedge. The lowest point at 89268 is a critical entry point, precisely aligning with the final support of the descending wedge. This signal indicates that the downward pattern has completed, and the technical conditions for a reversal are now mature.

The upcoming trend is logically clear. The descending wedge is fundamentally a bullish pattern, and the appearance of a double confirmation with a head and shoulders bottom on a smaller timeframe further shifts the balance of power between bulls and bears.