Bitcoin’s Recovery Extends Into 2026 as Charts Hint at Another Leg Higher

Overview

Bitcoin has kicked off 2026 with renewed momentum, marking a significant recovery that began in late December. The price has surpassed key psychological thresholds, indicating a potential shift in market sentiment and dynamics.

Recent Price Action

After concluding 2025 with a slight decline, Bitcoin has reclaimed the $90,000 zone and is currently trading above $92,000. This movement reflects a combination of technical breakouts, consistent institutional inflows, and reduced selling pressure, despite lingering skepticism from some market participants. The daily chart indicates moderate gains for Bitcoin, showcasing the asset’s resilience in the face of uncertainty.

Technical Structure Analysis

On the daily chart, Bitcoin is forming a rounded base that resembles the early stages of a cup-and-handle pattern, which is often associated with trend continuation. Recent price candles have closed higher, although the presence of long upper wicks suggests that resistance exists at current levels. Analysts emphasize the importance of maintaining a sustained hold above the $89,500–$90,000 range to support the bullish outlook. A confirmed break above the $94,700 area could validate this pattern and potentially lead to a measured move towards the $100,000–$104,000 zone, indicating a possible upside from recent prices.

Shorter-term indicators are also showing signs of improving momentum, with higher lows forming on lower time frames and moving averages beginning to trend upwards. However, the presence of elevated leverage on derivatives platforms raises concerns that pullbacks could trigger sharp liquidations if critical support levels are breached.

Institutional Demand and On-Chain Metrics

Beyond the technical analysis, underlying market data indicates a decrease in distribution. Exchange inflows have sharply fallen since late December, suggesting diminished immediate selling pressure. On-chain metrics reveal that both short-term and long-term holders are moving fewer coins, indicating a preference to hold rather than sell during this period of strength.

Institutional demand has notably re-emerged, particularly through spot Bitcoin ETFs. In early January, there was a significant influx of more than $600 million in net inflows within a single session. This trend reinforces the notion that larger investors are increasingly viewing Bitcoin as a long-term portfolio allocation rather than a short-term trading opportunity. This steady accumulation has helped Bitcoin withstand macro-driven volatility, including recent geopolitical developments that have impacted broader risk assets.

Skepticism in the Market

Despite the positive momentum, not all market participants are optimistic about the sustainability of this recovery. Some economists, including Peter Schiff, have expressed doubts, asserting that Bitcoin’s recent rally is unsustainable. They argue that gains in precious metals present a more compelling long-term investment case. Currently, Bitcoin remains approximately 26% below its all-time high, leaving room for ongoing discussions regarding its valuation and future direction.

From author

The current dynamics surrounding Bitcoin highlight a complex interplay of technical patterns, institutional interest, and market sentiment. While the recovery appears robust, the presence of skepticism and potential resistance levels suggests that market participants should remain cautious. Observing how Bitcoin navigates these challenges will be critical in determining its trajectory in the coming months.

Impact on the crypto market

• Bitcoin’s price recovery may influence overall market sentiment, potentially attracting new investors.
• Institutional inflows could lead to increased legitimacy and stability in the crypto market.
• The formation of bullish patterns might encourage traders to adopt more optimistic strategies.
• Ongoing skepticism from certain economists could create volatility as opposing narratives compete for attention.
• The ability to maintain key support levels will be crucial for sustaining bullish momentum and investor confidence.