Zooming out, the market appears to be forming a bottom.
From a sentiment perspective, the market has rebounded by about 20 points, moving out of the “fear” zone. This change is particularly clearly reflected in all risky assets, with the TOTAL market increasing by around 7%.
Against this backdrop, the Bitcoin (BTC) price consolidation around $90,000 appears constructive, resembling a classic consolidation range that could ultimately pave the way to six-figure levels.
Source: TradingView (BTC/USDT)
That said, expecting a clear and linear increase still seems premature.
On January 6, the price of Bitcoin fell by $3,000, leaving a long lower wick near $91,000.
The result? Yet another wave of liquidity triggered nearly $440 million in total liquidations, with about 70% of the losses incurred by long positions.
In essence, BTC has not yet fully released its volatility. In this context, it is essential to keep an eye on liquidity. And from the looks of it, Bitcoin price may still need to get more liquidity before a proper reversal can occur.
Low Supply Under Bitcoin Price Signals Caution
The divergence between Bitcoin price and market flows is becoming evident.
At the macro level, BTC ETFs broke the inflow streak of the past two days, posting a net outflow of $244 million across five ETFs. In fact, this is the first net outflow of 2026, a sign of weak institutional supply.
Meanwhile, Bitcoin’s (BTC.D) dominance has collapsed with three weekly reds, while the TOTAL market cap continues to climb. This reverse movement indicates that capital is flowing into alts, thereby capping the price of Bitcoin.
Source: TradingView (BTC.D)
Overall, the pattern suggests that we are not at BTC bottom yet.
Why it matters: Buying support under Bitcoin price remains weak, keeping long-term traders under pressure. Of course, BTC has absorbed most of the downside liquidity after holding $90,000, but it has yet to form a clear base.
Against this backdrop, a pullback seems likely before Bitcoin can move higher.
First, BTC needs a clean retest of $90,000 to stabilize the price and eliminate overexposed long positions, after which the path to near-term resistance around $95,000 opens, setting the stage for a potential run towards six-figure levels.
Final Thoughts
- Bitcoin price has yet to form a clear base, with weak buying support and long positions at risk; a pullback towards $90,000 is likely.
- Capital flowing into altcoins is capping Bitcoin, but a clean retest of $90,000 could pave the way for a move toward $95,000 and possibly six-figure levels.
