Bitcoin Bulls Chase $91K as Early 2026 Rally Finds Sustained Volume

-serif Bitcoin approached $90,000 as the first Wall Street trading session of 2026 opened. A new CME futures gap drew attention from traders, signaling potential short-term volatility. Bitcoin's price action showed increased momentum during the Asian trading session, but it faced a test as liquidity built up on both sides of the market.

Bitcoin traders began the year with renewed optimism. The most popular bet on Deribit was the January $100,000 call option, with $1.45 billion in notional open interest. This positioning reflects a bullish outlook for the year ahead.

Bitcoin reclaimed the $90,000 level in early January, supported by ETF inflows and whale buying activity. On-chain data pointed to coordinated accumulation, with large holders increasing their positions despite ETF outflows earlier in the week.

Bitcoin has remained above $90,000 as markets consolidate ahead of key macroeconomic data. The cryptocurrency stabilized following a period of uncertainty as ETF flows turned mixed, with spot ETFs seeing outflows on some days and inflows on others. Meanwhile, gold also showed strength, bouncing from a correction at year-end.

Why Did This Happen?

Bitcoin's rally to $90,000 was supported by technical and on-chain factors. The price cleared key support after a prolonged consolidation phase, with a funding rate reversal and a drop in the Fear & Greed Index signaling a shift in sentiment. Institutional activity also played a role, with ETF inflows and leveraged positioning contributing to upward pressure.

The CME futures market introduced a new downside gap after the holiday closure. This gap became a focal point for traders, with some analysts suggesting it could lead to a price dip to $88,000 as long positions clustered in that area. The gap fill theory, historically reliable in futures markets, added to the uncertainty.

How Did Markets React?

Bitcoin's price remained above $90,000 for several days, supported by buyers stepping in at key levels. However, the market showed signs of volatility, with $372 million in liquidations across crypto assets in the 24 hours leading to the Wall Street open. This activity indicated active leverage use and potential for sharp price swings.

The broader market context also influenced Bitcoin's performance. U.S. stock indices reached record highs, with the Dow and S&P 500 hitting new levels. This backdrop created a mixed environment for crypto, as investors rotated capital between assets ahead of key economic data.

Bitcoin's funding rates flipped to positive territory, indicating bullish positioning. However, this was accompanied by a drop in ETF assets under management, which raised questions about the sustainability of the rally. The disconnect between on-chain data and positioning created uncertainty about the market's direction.

What Are Analysts Watching Next?

Bitcoin's next target is $93,000, with a potential five-wave impulse move suggested by Elliott Wave analysis. A break above $94,617 would signal a bullish resolution and open the path to higher levels. However, a failure to hold above $89,000 could expose internal liquidity below $87,000.

Analysts are closely watching Bitcoin's order book and liquidation data. Passive bids around $90,000 were observed in the order book, suggesting buyer support. However, rising open interest also indicated risk on both sides of the market, with vulnerable long positions in the $90,000 area.

The CME Group's earnings report on February 4 will be another key event for the market. This data could provide insight into the futures market's health and how it aligns with Bitcoin's spot price. Traders are also monitoring the broader economic environment, including interest rates and geopolitical developments.

Bitcoin's ability to hold above $90,000 will determine whether the early 2026 rally continues. A sustained move to $93,000 would validate the bullish case, while a breakdown below $88,000 could signal a deeper correction. Investors are advised to monitor key levels and manage leveraged positions carefully.