Bitcoin (CRYPTO:BTC) began 2026 with renewed momentum as bullish sentiment returned across futures markets and spot trading volumes increased.
The price climbed steadily from the start of January, forming higher lows and higher highs before reaching a weekly peak near $94,800.
Market data suggests traders are resetting positions after failing to hold above the $95,000 resistance level.
A seven-day liquidation heatmap from Hyblock shows heavy long liquidation clusters between $87,000 and $89,000.
The same data highlights a concentration of short positions sitting close to the weekly range high around $95,000.
Technical indicators show Bitcoin trading above its 20-day moving average, which is now converging with the 50-day moving average.
Analysts note that this moving average convergence often signals a potential continuation of the prevailing trend.
After rejecting near $95,000, some traders appear to have taken profits in anticipation of a pullback to underlying support.
The 20-day moving average currently aligns with a key support zone near $89,400.
A controlled retest of this level could provide bulls with a stronger base for another upward attempt.
Futures market activity has played a dominant role in recent price movements.
On January 5, Bitcoin’s rally to $94,800 coincided with a surge of nearly $1.1 billion in futures buy volume.
During the same move, roughly $100 million worth of short positions were liquidated on the BTC/USDT pair on Binance.
Data from TRDR.io indicates that perpetual futures traders drove much of the intraday volatility.
Current order book structure suggests similar liquidation-driven moves could repeat if price pushes back towards $94,000.
A break above $95,000 could trigger fresh short covering and open a low-volume gap on the BTC/USDT chart.
Analysts estimate that filling this gap could allow Bitcoin to rally approximately 13% from current levels.
Such a move would place the next upside target near $101,500 if volume and momentum continue to build.
Traders remain focused on whether bulls can defend support and convert resistance into a launch point for the next leg higher.
At the end of reporting, Bitcoin price was $90,523.40.