According to ChainCatcher, the cryptocurrency market strengthened overall in the first week of January 2026, with Bitcoin and many other major assets showing a significant recovery from the deep correction at the end of 2025. After falling by about 6% in the final stages of last year and failing to meet the traditional "four-year cycle" expectation, Bitcoin regained the key psychological level of $90,000 on January 4.
Analysis indicates that the $88,000 area successfully provided strong support in the low-liquidity holiday environment, coupled with the return of funds to spot ETFs, shifting market sentiment from "panic" to "cautious optimism." As of Monday morning, Bitcoin was trading above $92,000, with the 100-hour moving average maintaining a bullish structure, and the next important resistance level pointing to $95,000. Bitcoin's stabilization also had a ripple effect on the overall market, with assets such as Ethereum and XRP rebounding slightly, as institutional funds began rebalancing for the new fiscal year.
At the macro level, slowing inflation and the resilience of the US economy constitute significant tailwinds. Although the expected halving event in 2025 did not materialize, the market structure has shifted towards institutional dominance, with a marked decrease in volatility and sentiment-driven trading. The expansion of stablecoins' pegs to US Treasury bonds is seen as a crucial channel for the resurgence of international funds into the crypto space.
Looking ahead to 2026, most analysts maintain a medium- to long-term optimistic outlook, believing that with continued institutional allocation and tightening supply available on exchanges, Bitcoin is likely to gradually move towards the $120,000-$150,000 range. In the short term, the market may still experience consolidation in January, but as long as the price holds above the key support level of $91,500, the path to a new all-time high in the first quarter remains open.
