Bitcoin Set to Hit 112K as Bulls Push Through Bearish Market Sentiment

Bitcoin futures are breaking higher after weeks of consolidation, with positioning and momentum pointing to further upside according to Bloomberg analysis. The cryptocurrency is regaining bullish traction as bears failed to force a breakdown below the 80k region. Momentum indicators and futures positioning suggest the balance of risks is tilting higher in the near term.

Bitcoin is trading just below its key short-term moving averages, reflecting a neutral-to-cautious near-term outlook. The 20-EMA around $92,100–$92,200 is acting as immediate dynamic resistance, limiting upside attempts, while buyers are defending support near the $91,800–$91,500 zone. Momentum indicators such as MACD show signs of stabilization, suggesting that selling pressure is easing, though strong bullish momentum has yet to return.

Institutional demand has continued to strengthen so far this week. SoSoValue data show that Bitcoin spot ETFs recorded $843.62 million in inflows on Wednesday, the highest single-day inflow since October 6. This marks the third consecutive day of positive flows into the ETFs, indicating growing confidence in the asset.

Why Did This Happen?

Bitcoin's rally is supported by regulatory optimism, particularly around proposed US legislation such as the Digital Asset Market Clarity Act. This legislation aims to provide clearer oversight and investor protections, which has helped lift sentiment and underpin the rally.

The recent surge in Bitcoin is also linked to institutional participation. Three consecutive days of inflows into spot ETFs this week have signaled strong demand. This has led to a psychological shift in the market, with traders now eyeing the $100,000 level.

How Did Markets React?

Bitcoin's price found support around a previously broken upper consolidation zone at $90,000 on January 8. The cryptocurrency recovered slightly through Monday and continued its surge the next day, hitting a nearly two-month high at $97,800. As of Thursday, BTC is trading at around $96,800, showing resilience in the face of bearish pressure.

The Relative Strength Index (RSI) on the daily chart is at 69, nearing the overbought level of 70, indicating strong bullish momentum. The Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover that remains intact, with rising green histogram bars above the neutral level, further supporting the positive outlook.

What Are Analysts Watching Next?

Analysts are closely monitoring key resistance levels, particularly the 100k handle and the 200-day EMA at 102,235. A test of this zone could trigger mean reversion, potentially offering another opportunity to reload at lower levels ahead of a move toward the 107k handle near the 200-day SMA.

The 100k level stands out as an obvious psychological target. Given Bitcoin's tendency to run further and faster than most expect, it appears conservative following the multi-week consolidation carved out near cycle lows. A sustained break above 100k could open the door towards 110k, close to the 112.55k high-volume node formed during the sell-off from the record high.

Market analysts remain divided on the future trajectory of Bitcoin. While some remain bullish, others caution that the rally could be short-lived. Vince Stanzione, CEO and founder of First Information, maintains a bearish outlook, arguing that the risk-reward ratio at current prices is unappealing. He believes gold will continue to outperform Bitcoin this year and predicts that the digital asset will close the year at a lower price.

Investor sentiment is also influenced by macroeconomic factors. The performance of major US tech earnings could test bullish resolve in the coming weeks. While Bitcoin has shown resilience, it remains vulnerable to further downside if tech earnings disappoint.

Bitcoin's technical structure suggests that consolidation and intermittent volatility are likely to persist as markets continue to digest recent corrections. For most of January 2026, Bitcoin's price is expected to trade within the $90,000–$95,000 range.

The long-term outlook for Bitcoin remains bright despite near-term consolidation. Institutional accumulation, comprising corporate purchases totaling billions, is the primary driver of renewed trust in BTC as a store of value. Although risk-off sentiment has led to some pullbacks, most analysts still see the overall trend as unchanged.