Bitcoin Price Expected to Climb Above $99,000 Despite Bearish Sentiment: Here’s Why

Summary: Crypto analyst TARA forecasts that Bitcoin's price will soar to approximately $99,300, despite current bearish indicators. The analysis explores the reasons behind this potential surge and what it might mean for Bitcoin's trajectory.

Key Takeaways

Analyst TARA predicts Bitcoin could reach around $99,300.
Current BTC price targets aim to avoid critical support at $90,000.
Trader sentiment shows a significant chance (48%) of Bitcoin reaching $100,000.
Increased liquidity and ETF inflows are supporting the Bitcoin rally.
Expert Arthur Hayes emphasizes the connection between political moves and potential price increases.

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Analyst Predicts Bitcoin Price Surge to $99,000

In a recent post on X, crypto analyst TARA highlighted her belief that Bitcoin's price will reach $99,300, even amid bearish candlestick patterns. She explained that this surge is essential before a deeper retracement occurs, ensuring that the critical support level at $90,000 remains intact. Additionally, she mentioned that Bitcoin's retracement levels are likely to be readjusted, with an anticipated 2026 high of over $97,000 and potential subwaves leading up to a target of $103,000.

Currently, many crypto traders are optimistic about Bitcoin's prospects, with a significant 48% probability shown in Polymarket data indicating that BTC may hit the psychological landmark of $100,000 this month. This anticipation follows Bitcoin's recent jump from around $92,000 to above $97,000, spurred by positive CPI inflation data released earlier in the week.

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Source: Chart from TARA on X

The rise in Bitcoin's price can also be attributed to the impact of spot Bitcoin ETFs that have recently contributed to bullish sentiment. Bloomberg analyst Eric Balchunas noted that these ETFs recorded impressive net inflows of $843 million on January 14. Furthermore, they have reached a total of $1 billion in one-week net inflows and $1.5 billion in year-to-date (YTD) figures. Following the previous year’s sideways trading, this rally to $97,000 suggests that buyers are rapidly overtaking sellers.

Arthur Hayes Predicts Bitcoin Rally as Liquidity Increases

In a recent blog entry, Arthur Hayes, co-founder of BitMEX, expressed his belief that Bitcoin's rally could be sustained with rising dollar liquidity. Hayes anticipates that liquidity will increase as former U.S. President Donald Trump finds new methods to stimulate the economy. Specifically, he mentioned that Trump's intention to lower mortgage rates may lead to increased borrowing among Americans.

Hayes pointed out that the liquidity conditions in 2025 negatively impacted crypto portfolios, which contributed to Bitcoin’s lackluster performance during that period. He advised market players to refrain from making incorrect conclusions about that underperformance, emphasizing that it was more about liquidity constraints rather than a cyclical bear market, as suggested by some analysts.

With the potential for increased liquidity in the market arising from Trump nominating a pro-rate-cut advocate to take the place of Fed Chair Jerome Powell, there could be larger rate cuts ahead. This scenario would likely benefit Bitcoin and the broader cryptocurrency market.

As of this writing, Bitcoin is trading around $95,300, showing a decline in the past 24 hours, according to data from CoinMarketCap.

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BTC trading at $95,969 on the 1D chart | Source: BTCUSDT on Tradingview.com