Bitcoin Price Back at $90K: Is the Bear Market Behind Us?

Bitcoin price moved back toward $90,000 early in 2026, though a breakout failed to hold due to geopolitical tensions and volatility in derivative markets.

Traditional financial markets were closed, but crypto markets remained active as traders navigated uncertainty over U.S. military action in Venezuela. Prices retreated briefly below $90,000 but remained above critical support levels.

Meanwhile, Bitcoin ETFs ended a seven-day outflow streak, with $355 million in inflows reported. This marked a shift in investor sentiment following a period of declining liquidity.

Why Did This Happen?

Bitcoin's recent price action was influenced by several factors, including geopolitical uncertainty and technical resistance levels. The U.S. military activity in Venezuela created short-term volatility, with some analysts suggesting it acted as a temporary pullback rather than a sustained bearish move.

The CME Group's Bitcoin futures market also played a role, with a new gap forming after the first Wall Street open of 2026. This gap created expectations for further price movement as traders anticipated volatility following the return of institutional players.

Whale accumulation and long-term holder buying also contributed to the rally, reducing sell pressure and stabilizing prices.

How Did Markets Respond?

Altcoins rallied alongside Bitcoin as the broader crypto market surpassed $3.07 trillion in value. Tokens like Ethereum, XRP, and Solana saw gains of 2–3%, while smaller assets like DOGE surged as much as 9%.

The market reaction reflected a broader shift in investor sentiment. With Bitcoin ETFs showing signs of stabilization, and on-chain data suggesting coordinated accumulation, market participants began to reposition for a potential upswing.

However, derivatives activity remained a key factor. Over $2.2 billion in Bitcoin and Ethereum options expired in the first major derivatives event of 2026. Bitcoin traded near its max pain level of $88,000, with a bullish put-to-call ratio indicating optimism among traders.

What Are Analysts Watching Next?

Analysts are monitoring a range of indicators to assess the sustainability of the current rally. One key measure is the 21-day simple moving average, currently at $87,850. Traders are watching whether Bitcoin can hold above this level to confirm a bullish trend according to recent analysis.

On-chain data remains mixed. While some indicators like the Fear & Greed Index and funding rates suggest optimism, whale balances are declining, and ETFs remain under pressure. These mixed signals raise concerns about a potential bull trap according to market observers.

Looking ahead, the week's volatility is expected to continue as key players return to the market. Analysts like @Wealthmanager and Lennaert Snyder anticipate more short-term fluctuations, but remain cautiously bullish if support levels hold.

As Bitcoin approaches $90,000, the market is at a crossroads. A sustained break above this level could signal a new bull trend, while a pullback may reignite bearish sentiment.