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.