Bitcoin's Price Rally Predicted to Surpass $99,000 Despite Bearish Signals

Cryptocurrency analyst TARA forecasts that Bitcoin will rebound to over $99,000, despite current bearish trends. This prediction comes from a recent analysis that indicates a potential price target before a healthy correction, which would maintain crucial support levels.

Key Takeaways

Bitcoin is expected to rise above $99,000, with the possibility of a deeper retracement without breaking critical support.
Current trading trends reflect strong positioning toward a significant rally past major resistance levels, aided by favorable inflation data.
Bitcoin ETFs have seen substantial net inflows, fueling early-year price surges.
Liquidity conditions are anticipated to improve, which could bolster Bitcoin's market performance, influenced by U.S. economic policies.

Crypto analyst predicts Bitcoin rally above $99,000 despite bearish indicators - 1

Main Content

Cryptocurrency analyst TARA has predicted that Bitcoin will experience a rally, aiming to exceed the $99,000 mark, despite existing bearish signals. According to analysis from NewsBTC, Bitcoin is expected to hit this target price level before facing a deeper market correction, which should help maintain essential support levels. TARA indicated that these retracement levels would be adjusted, with an optimistic outlook for reaching new highs in 2026.

Currently, cryptocurrency traders are preparing for a rally as they work towards overcoming major resistance levels, targeting the six-figure psychological threshold. This follows a recent increase in Bitcoin's price, spurred by softer-than-expected Consumer Price Index inflation data released earlier this week. Market observers note that spot Bitcoin exchange-traded funds (ETFs) have also played a significant role in driving the early-year price surge.

Bloomberg analyst Eric Balchunas has reported robust net inflows for Bitcoin ETFs, which are staging impressive one-week and year-to-date performances. As Bitcoin price rallies came on the heels of a stable trading period towards the end of last year, Balchunas speculated that buyers might have outpaced sellers.

In a recent blog post, BitMEX co-founder Arthur Hayes suggested that this rally has the potential to continue, as dollar liquidity is expected to expand rapidly. He pointed out that U.S. President Donald Trump may adopt measures aimed at injecting liquidity into the economy, including plans to lower mortgage rates, which could encourage further borrowing.

Hayes emphasized that the liquidity conditions in 2025 previously did not favor cryptocurrency portfolios, leading to lackluster performance. He advised against interpreting these conditions as indicative of a cyclical bear market, instead attributing them to liquidity-driven effects. Further liquidity could enter the market if Trump appoints a pro-rate-cut advocate to replace the chair of the Federal Reserve, potentially resulting in larger rate cuts that would benefit Bitcoin and the wider cryptocurrency ecosystem.

At the time of this report, Bitcoin's value was slightly lower over the last 24 hours.