A Bitfinex Alpha report notes that Bitcoin, driven by strong spot demand, broke through the $94,000 to $95,000 resistance level, reaching an intraday high of $97,850 on January 14th, its highest level in over two months. This surge triggered a significant short squeeze, with single-day short covering reaching its highest level in nearly 100 days, and open interest returning to normal as leveraged longs took profits and shorts were forced out. Since Bitcoin returned to its 2025 opening price and rose more than 21% from recent lows, the market structure has clearly improved, even after a price pullback of approximately 6% from its highs. This breakout, even if temporary, is still constructive, reflecting reduced leverage pressure and improved market conditions, provided that spot demand persists. Bitcoin is entering a dense supply zone dominated by long-term holders (LTH), roughly between $93,000 and $110,000, where previous attempts to rally have stalled. While LTH holders remain net sellers, their selling pace has slowed significantly, with realized profits dropping from over 100,000 BTC at the cycle peak to around 12,800 BTC per week. This slowdown, coupled with support from first-quarter seasonality and stronger order flow dynamics than in previous rallies, increases the likelihood of Bitcoin absorbing the supply above. A sustained breakout from this zone would require further easing of selling pressure from LTH holders, paving the way for a more sustained rally and a potential retest of all-time highs.