Zooming out, the market appears to be forming a bottom.
From a sentiment point of view, the market has recovered by about 20 points, moving out of the ‘fear zone’. This shift is particularly evident across all risky assets, with the TOTAL market up around 7%.
Against this background, Bitcoin [BTC] a price consolidation around $90,000 seems constructive and resembles a textbook consolidation range that could eventually pave the way to six-figure levels.
Source: TradingView (BTC/USDT)
That said, expecting a clean, linear step up still feels premature.
On January 6, Bitcoin price fell by $3,000, leaving a long lower fuse of almost $91,000.
The result? Another liquidity survey raised almost $440 million total liquidationswith around 70% of losses coming from long positions.
Essentially, BTC has not yet completely shaken off its volatility. In this context, keeping an eye on liquidity is crucial. And from the looks of it, Bitcoin price may need to gain even more liquidity before a real turnaround can occur.
A weak bid below the Bitcoin price indicates caution
The difference between the Bitcoin price and the market flow becomes clear.
On a macro level, BTC ETFs have broken the inflow streak of the past two days and a Net outflow of $244 million across five ETFs. In fact, this marks the first net outflow of 2026, indicating weak institutional bidding.
Meanwhile, Bitcoin dominance [BTC.D] has been cut short with three red weeklies, while TOTAL market cap continues to rise. This reverse move indicates that capital is flowing into alts, limiting the Bitcoin price.
Source: TradingView (BTC.D)
All things considered, the setup suggests we are not yet at a BTC bottom.
Why it matters: Buying support under the 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 not yet formed a clear base.
In this context a A relapse seems likely before Bitcoin can go higher.
First, BTC needs a clean retest at $90,000 to stabilize the price and shake out overexposed longs, after which the path to near-term resistance opens around $95,000, paving the way for a potential run to six-figure levels.
Final thoughts
- Bitcoin price has not yet formed a clear base, with weak buying support and long positions at risk; a pullback to $90,000 is likely.
- Capital flowing into altcoins limits Bitcoin, but a clean retest of $90,000 could pave the way for a move towards $95,000 and eventually a six-figure level.