Bitcoin Price Will Still Rally Above $99,000 Despite Bearish Sentiment, Here’s Why

Overview

Despite current bearish signals, crypto analyst TARA has predicted that Bitcoin could rally to a price of $99,300. This potential price movement is significant, as it may impact market sentiment and trading behavior in the cryptocurrency space.

Bitcoin Price Prediction Amid Bearish Signals

In a recent post, TARA expressed her belief that Bitcoin is poised to reach a target of $99,300, even as it prints a bearish candlestick pattern. She suggested that this upward movement is important, as it would allow Bitcoin to touch the target before experiencing a deeper retracement. This strategy aims to ensure that the price correction does not breach the critical support level at $90,000.

TARA indicated that the retracement levels for Bitcoin are likely to be adjusted, with a new high projected for 2026 above $97,000. She also mentioned the presence of subwaves that could lead to a full target of $103,000.

Currently, traders in the cryptocurrency market are betting on Bitcoin surpassing the $99,000 mark and reaching the psychologically significant $100,000 level. Data from Polymarket suggests a 48% probability that Bitcoin will achieve this milestone within the current month. This optimism follows a recent rally in Bitcoin’s price, which rose from approximately $92,000 to above $97,000, attributed to the release of favorable Consumer Price Index (CPI) inflation data.

Additionally, the introduction of spot Bitcoin exchange-traded funds (ETFs) has played a role in boosting Bitcoin’s price at the start of the year. Bloomberg analyst Eric Balchunas reported that ETFs experienced net inflows of $843 million on January 14, with one-week net inflows reaching $1 billion and total year-to-date inflows at $1.5 billion. This influx of capital has contributed to Bitcoin’s recent price surge.

Predictions from Other Analysts

Arthur Hayes, the co-founder of BitMEX, has also shared insights regarding the future of Bitcoin’s price. In his latest blog post, he suggested that Bitcoin could maintain its upward trajectory due to a rapid increase in dollar liquidity. Hayes pointed to potential liquidity injections into the economy by U.S. President Donald Trump, who may implement measures such as lowering mortgage rates to encourage borrowing.

Hayes cautioned market participants against misinterpreting Bitcoin’s underperformance in 2025 as indicative of a cyclical bear market. He emphasized that liquidity was the primary factor affecting market performance rather than broader economic cycles. He also noted that increased liquidity could result from Trump’s nomination of a rate-cut advocate to replace Federal Reserve Chair Jerome Powell, which might lead to larger rate cuts that would be favorable for Bitcoin and the overall cryptocurrency market.

From author

The current predictions regarding Bitcoin’s price highlight the complexity of market dynamics and the influence of macroeconomic factors. Analysts are divided on the potential for Bitcoin to break through significant price levels amid bearish trends, but there remains a strong sentiment within the trading community that a rally is possible. The interplay between liquidity, market sentiment, and external economic factors will be crucial in determining the direction of Bitcoin’s price in the coming weeks.

Impact on the crypto market

• Increased interest in Bitcoin may lead to higher trading volumes as traders react to price predictions.
• A successful rally above $99,000 could inspire further bullish sentiment across the market.
• The performance of Bitcoin could influence other cryptocurrencies, potentially leading to a broader market rally.
• Fluctuations in liquidity due to economic policies may affect investor confidence and market stability.
• The growing interest in Bitcoin ETFs could create a more favorable investment environment for institutional investors.