Bitcoin’s Recovery Projected to Continue Into 2026

Bitcoin (BTC) has started 2026 with renewed energy, furthering a recovery that kicked off in the last days of December and pushing prices back above significant psychological levels.

Key Takeaways

Bitcoin has reclaimed the $90,000 zone and is currently trading above $92,000.
The daily chart indicates a cup-and-handle pattern which suggests potential for further price increases.
Improved market conditions show fewer immediate selling pressures, bolstered by strong inflows into Bitcoin ETFs.
Institutional demand for Bitcoin is on the rise, indicating continued interest from larger investors.

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Bitcoin’s Strong Performance in 2026

After concluding 2025 with a slight drop that tested traditional four-year cycle predictions, Bitcoin has successfully moved back into the $90,000 range. It is now trading above $92,000, driven by a combination of technical breakouts, consistent institutional investments, and reduced selling pressure, despite lingering skepticism from some market observers.

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Technical Indicators Suggest Potential Upswing

Reviewing the daily charts, Bitcoin has been forming a rounded base that resembles the initial phases of a cup-and-handle pattern, which is typically seen as a signal of ongoing trends. Recent candle formations indicate upward movement, but some long upper wicks highlight resistance around current levels. Analysts emphasize that holding strong above the $89,500 to $90,000 range is key to maintaining this bullish posture.

A breakout past the $94,700 range could confirm this pattern, potentially setting the stage for a rise towards the $100,000 to $104,000 zone, signifying a possible increase of 10-12% from current prices. Short-term technical indicators also show a solid momentum shift, with higher lows and an upward trend in moving averages. However, heightened leverage in derivative markets suggests that any significant pullbacks could result in sharp sell-offs should support levels be compromised.

Institutional Support for Bitcoin’s Surge

Alongside technical analysis, current market data points to decreased distribution of Bitcoin. Exchange inflows have significantly dropped since late December, signaling a decline in immediate selling pressure. On-chain analytics reveal that both short-term and long-term holders are moving fewer coins, indicating a preference for holding Bitcoin rather than selling during market strength.

Additionally, institutional demand is resurging through Spot Bitcoin ETFs. The beginning of January witnessed over $600 million in net inflows in just one session, reinforcing the trend that larger investors are treating Bitcoin as a strategic portfolio asset rather than a fleeting trade. This steady accumulation has enabled Bitcoin to weather macroeconomic volatility, including recent geopolitical events that temporarily influenced broader market assets.

Despite these positive signals, some skeptics remain. Economist Peter Schiff has reiterated his long-standing belief that Bitcoin’s recent rally may not be sustainable, asserting that gains in precious metals offer a more reliable long-term investment perspective.

Presently, Bitcoin remains approximately 26% below its all-time high, continuing the discussion over its valuation and future direction. Thus, the focus in the market will be whether Bitcoin can capitalize on its early 2026 recovery and continue its upward trajectory.

Cover image from ChatGPT, BTCUSD chart from Tradingview