Bitcoin just hit $97,000 for the first time in three months, and the rally has investors asking one question: Is $100K finally happening?
After two months of sideways trading between $90,000-$94,000, Bitcoin exploded higher this week. The current price sits around $95,700, with key resistance at the $97,000-$98,000 zone.
What's Driving the Move
- Massive ETF Inflows: Bitcoin spot ETFs saw $1.7 billion in inflows over recent days. Fidelity's FBTC fund alone pulled in $351 million in a single day.
- Institutional Accumulation: Whale buying is outpacing retail selling. Companies like Newrez ($864B mortgage lender) announced accepting Bitcoin for mortgage qualification.
- Inflation Cooling: December CPI came in at 2.7% (core 2.6%), below expectations - boosting risk asset sentiment.
- Ethereum Following: ETH is holding above $3,300 with 30% of supply now staked (record high). Ethereum ETFs saw $164M in inflows on January 15.
Key Levels to Watch
| Level | Price Zone |
|---|---|
| Strong Resistance | $97,000 - $100,000 |
| Current Price | ~$95,700 |
| Key Support | $94,000 - $95,000 |
| Major Support | $90,000 |
Regulatory Watch
The CLARITY Act - the major crypto market structure bill - has been delayed until late January. Coinbase CEO withdrew support over stablecoin and DeFi restrictions, and the Senate Banking Committee needs more bipartisan support. This will be critical for crypto's regulatory framework in 2026.
Market Sentiment
The Fear and Greed Index sits at 50 (Neutral), down from 54 yesterday. This suggests the market isn't overheated yet, leaving room for further upside if momentum continues.
Bull vs. Bear Case
Bulls say:
- ETF demand creating sustained institutional bid
- 2024 halving effects historically bullish 12-18 months post-event
- Corporate treasuries expected to increase Bitcoin holdings in 2026
- $100K is the next major confirmation level
Bears warn:
- RSI approaching overbought territory
- Risk of "buy the rumor, sell the news" around Trump policies
- Market susceptible to liquidity vacuums and sudden deleveraging
- CLARITY Act uncertainty could create headline risk
The Bottom Line
Bitcoin's January rally represents a structural shift from months of consolidation, fueled by institutional ETF demand and improving macro conditions. The market is watching whether BTC can hold $94K support and break decisively through $100K resistance.
This is a pivotal month for confirming the next bull phase - or facing another correction.
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