The opening days of 2026 saw Bitcoin and several major altcoins recover toward the upper end of their weekly trading ranges.
The move reflected improving investor sentiment and a pickup in trading volume across crypto markets.
Since Jan. 1, Bitcoin has shown signs of strengthening price structure.
Daily charts display a pattern of higher lows and higher highs.
This tightening consolidation pushed Bitcoin toward a weekly high near $94,800.
Market data shows clear liquidation zones forming above and below the current price range.
Long liquidation clusters have developed between $89,000 and $87,000.
Short positions have accumulated close to the $95,000 resistance area.
From a technical perspective, the early-year rally pushed Bitcoin above its 20-day moving average.
The 20-day moving average is now converging with the 50-day moving average.
This convergence is often watched by traders as a signal of trend continuation or reversal.
Bitcoin’s failure to hold above $95,000 suggests profit-taking by short-term participants.
Some traders appear to have exited positions in anticipation of a pullback.
A retest of support near the 20-day moving average around $89,400 is viewed as a possible scenario.
If buying pressure returns and volume remains strong, another attempt on $95,000 could follow.
A successful breakout could trigger short covering and forced liquidations.
Such a move would exploit a visible gap in the volume profile.
This could open the path for a rally of roughly 13% toward $101,500.
Recent price action highlights the growing influence of perpetual futures markets.
Intra-day volatility has largely been driven by leveraged traders rather than spot buyers.
On Jan. 5, futures buy volume surged by nearly $1.1 billion as Bitcoin rallied toward $94,800.
During the same move, around $100 million in short positions were liquidated on major exchanges.
These liquidations amplified upward momentum over a short time frame.
The data suggests that futures positioning remains crowded near key resistance levels.
If traders push Bitcoin back toward $94,000, similar liquidation dynamics could emerge again.
This creates a feedback loop where price moves trigger forced buying or selling.
While this can accelerate rallies, it also increases downside risk during pullbacks.
Altcoins have mirrored Bitcoin’s recovery, though with more muted moves.
Traders remain selective, focusing on high-liquidity assets rather than speculative tokens.
Overall market structure suggests cautious optimism rather than euphoric risk-taking.
Participants appear willing to buy dips but remain sensitive to resistance levels.
The coming sessions are likely to test whether spot demand can replace leveraged momentum.
A sustained breakout would require consistent volume beyond futures-driven spikes.
Until then, Bitcoin remains range-bound with clear levels shaping trader behaviour.
