Cryptocurrency Market Strengthens as Bitcoin Recovers Key Levels

According to BlockBeats, the cryptocurrency market has shown significant strength in the first week of January 2026, with Bitcoin and other major assets recovering from a deep correction at the end of 2025. Bitcoin, which fell approximately 6% during the closing phase of last year, has regained the crucial psychological level of $90,000 as of January 4. Analysts highlight that the $88,000 region provided strong support amid low liquidity during the holiday period, coupled with the return of spot ETF funds, shifting market sentiment from 'panic' to 'cautious optimism.' As of Monday morning, Bitcoin is trading above $92,000, maintaining a bullish structure on the 100-hour moving average, with the next significant resistance at $95,000. Bitcoin's stability has positively impacted the broader market, with assets like Ethereum and XRP experiencing slight rebounds, and institutional funds beginning to rebalance for the new fiscal year. On a macroeconomic level, factors such as slowing inflation and the resilience of the U.S. economy are providing favorable conditions. Although the anticipated 2025 halving rally did not materialize, the market structure has shifted to being dominated by institutional funds, resulting in reduced volatility and emotional trading. The expansion of stablecoins linked to U.S. Treasury bonds is seen as a crucial channel for international funds to re-enter the crypto ecosystem. Looking ahead to 2026, most analysts maintain a long-term optimistic outlook, suggesting that Bitcoin could gradually move towards the $120,000–$150,000 range amid continued institutional allocation and tightening exchange supply. In the short term, the market may experience fluctuations in January, but as long as the price holds the key support level of $91,500, the path to reaching new historical highs in the first quarter remains open.