Bitcoin breaks through resistance
Tuesday’s over 4% rally is technically significant as it has taken the cryptocurrency above its key $94,095.33 – $94,766.54 resistance area for the first time since mid-November.
Since the beginning of 2026, Bitcoin has traded in a more measured and nuanced environment, shaped by macroeconomic uncertainty, evolving institutional participation and shifting investor sentiment.
Rather than extending the sharp correction seen at the end of last year, Bitcoin initially settled into a broad consolidation phase, with prices oscillating mainly between the high-$80,000s and mid-$90,000s as markets digest earlier excesses and transition towards a more mature phase of price discovery.
This consolidation broke into renewed strength this week as Bitcoin surged above $95,000, gaining more than 3% in a 24-hour period and marking solid early-year gains even though prices remain well below the October 2025 all-time highs.
Regulatory optimism around proposed US legislation such as the Digital Asset Market Clarity Act – aimed at providing clearer oversight and investor protections – helped lift sentiment and underpin the rally in Bitcoin and other major cryptocurrencies. This legislative focus from the Senate Banking Committee has been cited by analysts as a catalyst for short-term upside momentum.
Earlier in January, Bitcoin edged back towards the $94,500 region, reflecting intermittent strength as broader crypto markets stabilised, but the move appeared driven less by fresh speculative enthusiasm and more by resilience following weeks of volatility. Buyers stepped in on dips while sellers remained active near resistance, reinforcing the perception that Bitcoin remained balanced between accumulation and distribution rather than trending decisively in either direction. This seems to have now changed with Tuesday’s breakout to the upside.
Geopolitical uncertainty has added another layer to the market backdrop. Episodes of heightened global tension and expectations of safe-haven demand have coincided with stronger Bitcoin interest, reinforcing its appeal to some investors as an alternative store of value during periods of instability. While these factors have not driven lasting rallies by themselves yet, they have contributed to the underlying bid that has helped prices break out of their November-to-January sideways trading range.
Bitcoin bullish case:
Bitcoin’s rally above the major resistance area made up of the mid-November low and the December and early January highs at $94,095.33 – $94,766.54 is short-term bullish. It has put the psychological $100,000 region back on the map.
For the current bullish reversal to gain traction, the 11 November high at $107,461.75 would need to be overcome.
Support may now be found in the $94,766.54-to-$94,095.33 region and at the late November $93,104.72 high.
Bitcoin bearish case:
Were Bitcoin’s rally to fizzle out and a fall through the late November $93,104.72 high to be seen, the 55-day simple moving average (SMA) at $89,596.11 may be revisited.
Only a currently less likely slip through the 8 January low at $89,226 could lead to the $88,000 region being retested. Further down lie the early December $83,871.20 low and the November trough at $80,619.71.
Short-term outlook:
Bullish, targeting the $100,000 region while above the 8 January low at $89,226.00.
Medium-term outlook:
Bullish while above the mid-December low at $84,445.35.