Bitcoin (BTC) has opened 2026 with renewed momentum, extending a recovery that began in the final days of December and pushing prices back above key psychological levels.

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After ending 2025 with a modest decline that challenged expectations around the traditional four-year cycle, the largest asset has reclaimed the $90,000 zone and is trading above $92,000. The move reflects a mix of technical breakouts, steady institutional inflows, and easing selling pressure, even with long-term skepticisms.

Technical Structure Points to Higher Levels

On the daily chart, Bitcoin (BTC) has been forming a rounded base that resembles the early stages of a cup-and-handle pattern, a structure often associated with trend continuation.

Recent candles have closed higher, though long upper wicks suggest some resistance near current levels. Analysts note that maintaining a sustained hold above the $89,500–$90,000 range is crucial to sustaining the bullish setup.

A confirmed break above the $94,700 area could validate the pattern and open the door to a measured move toward the $100,000–$104,000 zone, implying roughly 10–12% upside from recent prices.

Shorter-term indicators also show improving momentum, with higher lows forming on lower time frames and moving averages beginning to turn upward. However, elevated leverage on derivatives platforms means that pullbacks could still trigger sharp liquidations if support levels are breached.

Bitcoin ETF Inflows and On-Chain Data Support the Move

Beyond charts, underlying market data points to reduced distribution. Exchange inflows have dropped sharply since the end of December, signaling lower immediate selling pressure. On-chain metrics show both short-term and long-term holders moving fewer coins, suggesting a preference to hold rather than sell into strength.

Institutional demand has also re-emerged through spot Bitcoin ETFs. Early January saw more than $600 million in net inflows in a single session, reinforcing the view that larger investors continue to treat Bitcoin as a portfolio allocation rather than a short-term trade.

This steady accumulation has helped Bitcoin absorb macro-driven volatility, including recent geopolitical headlines that briefly lifted broader risk assets.

Skepticism Remains as Market Eyes 2026 Outlook

Not everyone is convinced the recovery will last. Economist Peter Schiff has reiterated his long-standing view that Bitcoin’s rally is unsustainable, arguing that recent gains in precious metals offer a stronger long-term case.

Related Reading: Memecoin Strength Returns After Historic Market Decline: A Setup For A Comeback?

Still, Bitcoin remains roughly 26% below its all-time high, leaving room for further debate over valuation and direction. Consequently, the market appears to be focused on whether Bitcoin can build on its early 2026 recovery.

Cover image from ChatGPT, BTCUSD chart from Tradingview

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Filed under: Bitcoin - @ January 5, 2026 9:00 pm