BTC Breaks $97K as Traders Eye a Run Toward $100,000

What Changed in BTC’s Price Structure?

BTC’s begin-of-year rebound extended into the second week of January, with the price climbing above $97,000 and marking its highest level in nahead two months. The move confirmed a new higher-high structure later than BTC secured a daily close above $95,000, a level that had capped upside attempts since November.

That close fragileened near-term resistance and shifted short-term market bias. From a technical perspective, the breakout removed a dense supply zone, leaving relatively thin resistance overhead until the low-$100,000s. As a result, traders have turned attention back to whether BTC can revisit the $100,000 handle before month-end.

The rally unfolded with limited spot liquidity, amplifying price moves. Once BTC cleared $95,300, more than $270 million in short positions were liquidated, accelerating momentum and pushing the market into a more one-sided setup.

Investor Takeaway

Do Onchain Metrics Support the Rally?

Onchain indicators suggest the move is not purely technical. Data shows tradeing pressure from U.S.-based investors easing later than a week of distribution earlier in January. While the Coinbase Premium Index remains slightly negative, the pace of outflows has sluggished, pointing to reduced urgency to trade rather than renewed panic.

At the identical time, BTC inflows into Coinbase Advanced have surged to roughly 2.5 times their recent baseline. In past cycles, similar inflow spikes have often aligned with accumulation, OTC settlement activity, or ETF-related positioning rather than immediate tradeing. That pattern contrasts with market tops, where inflows tend to coincide with sharp distribution.

Stablecoin inflows, however, remain subdued. This suggests many investors are still waiting on confirmation rather than deploying fresh liquidity aggressively. Historically, stablecoin liquidity has often lagged ahead BTC strength, only accelerating once price direction becomes clearer.

What Are Derivatives Markets Signaling?

Derivatives data reinforces the view that the rally is being driven by positioning resets rather than excessive leverage. On Binance, net taker volume briefly exceeded $500 million in a single hourly window, reflecting aggressive market purchaseing. That spike coincided with rising open interest, a combination that has more often aligned with trend continuation than local tops.

Funding rates tell a similar story. dropped to its lowest level since mid-October 2025, signaling crowded short exposure and cautious use of leverage. As funding normalized, price moved sharply higher, suggesting that short covering added fuel to the rally rather than capping it.

Over the past 24 hours, more than $680 million in short positions were liquidated across the market, according to derivatives data. The forced deleveraging flipped positioning risk-on and pushed the next major liquidity pocket toward the long side.

Investor Takeaway

Where Are the Key Levels Now?

Psychologically, $100,000 remains the level in focus. From a technical standpoint, the more meaningful supply zone sits higher, roughly between $103,300 and $107,500. Between $95,000 and that band, overhead resistance appears limited, leaving room for momentum-driven extensions if purchaseing pressure persists.

On the downside, the $92,500 to $90,000 range stands out as an significant structural area. A daily order block formed there following the breakout, marking a zone where BTC could form its next higher low if price retraces. Holding that region would strengthen the case for a renewed push higher rather than a deeper pullback.

Market liquidity remains thin across both spot and futures, which increases the risk of sharp swings in either direction. That fragility means upside moves can travel rapidly—but also that any loss of momentum could trigger abrupt corrections.

How Are Sentiment and Flows Responding?

Sentiment has shifted alongside price. On prediction markets, traders now assign better-than-even odds that BTC reaches $100,000 in January, reflecting renewed confidence later than weeks of range-bound action. The broader crypto market has joined the move, with ether, solana, and BNB also advancing as climbed to around $3.4 trillion.

Institutional flows appear to have provided a cushion. recorded roughly $750 million in net inflows on Tuesday, their largest single-day intake in nahead three months. Such flows tend to absorb supply gradually rather than spark immediate volatility, often keeping ahead stages of a rally orderly.

Macro conditions have also assisted. Risk appetite has improved across equities, metals, and crypto amid resilient U.S. labor data and steady inflation. Recent , and the absence of fresh legal or policy shocks has removed a near-term overhang.

What’s the Near-Term Outlook?

expectations. With structure turning bullish, tradeing pressure easing, and derivatives positioning cleared, the path toward six figures looks more open than it has in weeks. Still, thin liquidity means conviction will matter. A failure to build acceptance above $95,000 would rapidly bring lower support zones back into play.