Bitcoin (BTC) begins 2026 with renewed momentum, extending the recovery that began at the end of December and pushing the price above key psychological levels.
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After ending 2025 with a modest decline that defies traditional four-year cycle expectations, the largest asset has regained the $90,000 zone and is now trading above $92,000. The move reflects a technical breakout, steady inflows from institutional investors and easing selling pressure, despite long-term skepticism.
BTC's price records moderate gains on the daily chart. Source: BTCUSD on Tradingview
Technical structure indicating a higher level
On the daily chart, Bitcoin (BTC) Forming a rounded base similar to the early stages of the cup-and-handle pattern, this structure is often associated with trend continuations.
Recent candlesticks ended higher, but a long top wick suggests resistance near current levels. Analysts note that sustainably sustaining above the $89,500 to $90,000 range is key to sustaining the bullish setting.
A confirmation above the $94,700 area could validate the pattern and open the door for a measured move towards the $100,000-$104,000 zone, suggesting roughly 10-12% upside from recent prices.
Short-term indicators also show that momentum is improving, with lows forming on lower time frames and the moving average starting to turn higher. However, the increased leverage of derivatives platforms means that pullbacks can still trigger sharp liquidations if support levels are breached.
Bitcoin ETF inflows and on-chain data support this movement
Beyond the charts, underlying market data shows a decline in distribution. Foreign exchange inflows have fallen sharply since the end of December, suggesting that near-term selling pressure is easing. On-chain indicators show that both short-term and long-term holders are moving less coin, suggesting they prefer to hold rather than sell on strength.
Institutional demand also Spot Bitcoin ETF. In early January, it saw over $600 million in net inflows in a single session, reinforcing the view that large investors continue to treat Bitcoin as a portfolio allocation rather than a short-term transaction.
This steady accumulation has allowed Bitcoin to absorb macro-driven volatility, such as recent geopolitical headlines that temporarily lifted broader risk assets.
Market remains skeptical about outlook for 2026
Not everyone is convinced the recovery will last. economist peter schiff reiterated its long-held view that Bitcoin’s rally is unsustainable, and argued that the precious metal’s recent rally provides a stronger long-term rationale.
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Still, Bitcoin remains about 26% below its all-time high, leaving room for further debate over its valuation and direction. As a result, the market appears to be focused on whether Bitcoin can get back on track for a recovery in early 2026.
Cover image from ChatGPT, BTCUSD chart from Tradingview
