Bitcoin has kicked off 2026 with renewed vigor, extending a recovery that began in late December and pushing its price back above key psychological thresholds. After navigating a challenging end to 2025, the world's largest cryptocurrency has firmly reclaimed the $90,000 zone and is now trading above $92,000, signaling a blend of technical breakthroughs, sustained institutional interest, and easing selling pressure.
Technical Structure Points to Higher Levels
On the daily chart, Bitcoin (BTC) has been forming a "rounded base," a pattern often indicative of trend continuation, similar to the early stages of a cup-and-handle formation. Recent candle closes at higher levels, despite some resistance marked by long upper wicks, underscore a bullish sentiment. Analysts emphasize that maintaining a sustained hold above the $89,500–$90,000 range is critical to preserving this upward momentum. A confirmed breakout above the $94,700 area would validate the pattern, potentially paving the way for a measured move toward the $100,000–$104,000 zone, representing a 10-12% upside from current prices. Shorter-term indicators also align with this bullish outlook, showing improving momentum and upward-turning moving averages. However, elevated leverage in derivatives markets suggests that any breach of support levels could trigger sharp liquidations.
ETF Inflows and On-Chain Data Bolster the Rally
Beyond chart patterns, fundamental market data supports Bitcoin’s ascent. Exchange inflows have notably declined since the close of December, indicating reduced immediate selling pressure. On-chain metrics reveal a shift in behavior among both short-term and long-term holders, with fewer coins being moved, suggesting a preference for holding rather than selling into strength. This accumulation sentiment is further reinforced by the re-emergence of institutional demand, particularly through spot Bitcoin ETFs. Early January witnessed over $600 million in net inflows in a single session, highlighting a persistent view among larger investors that Bitcoin is a valuable portfolio allocation rather than a short-term trade. This steady accumulation has helped Bitcoin absorb broader macroeconomic volatility, including recent geopolitical headlines that typically impact risk assets.
Skepticism Remains Amidst a Bullish 2026 Outlook
Despite the promising start to the year, not all market observers are convinced that the recovery will endure. Renowned economist Peter Schiff has reiterated his long-standing view that Bitcoin's rally is unsustainable, suggesting that recent gains are fleeting and that precious metals offer a stronger long-term investment case. Nevertheless, Bitcoin still trades approximately 26% below its all-time high, leaving ample room for debate on its valuation and future trajectory. The primary focus for the market will be on whether Bitcoin can capitalize on its early 2026 momentum and solidify its recovery, setting the stage for continued growth in the coming months.
