Bitcoin is showing bullish signs despite the ‘broken consolidation phase’

Bitcoin is moving out of the bottom of the area and out of the correction phase, but the path ahead is volatile.

Crypto market momentum conditions have started to recover, along with the RSI [relative strength index] Returning to the upper neutral zone again, “indicative of a renewed build at a higher pace,” on-chain analytics platform Glassnode reported on Monday.

More bitcoin supply is returning to profits, losses are shrinking, and perceived loss-taking pressure has decreased significantly, “indicating a gradual improvement in holdings,” he added.

“Spot market behavior shows a meaningful reduction in sell-side volatility, with spot size expanding modestly with no signs of speculative gains showing improving liquidity.”

As momentum recovers and pressure fades, $BTC is stabilizing in the $80K–95K range. Spot liquidity is thin, open demand is cautiously rebuilding, and options markets indicate volatility in the near term.

Read more on this week's Market Pulse👇 pic.twitter.com/ehcrTHjkZR

— glassnode (@glassnode) January 5, 2026

BTC is preparing to move higher

The analysts also noted that crypto derivatives are showing a controlled position with less aggressive energy, and perpetual futures are showing renewed buying confidence. Meanwhile, US spot ETFs are posting positive returns with institutional interest returning.

“Overall, Bitcoin is moving out of the correction phase and into a fragile consolidation system,” he said.

“While participation and institutional flows are improving, structural chain demand is still low, putting volatility and profitability at risk as the market tries to rebuild higher ground.”

“Bitcoin's New Year's rebound, with renewed institutional earnings and strong options placing a strike above $100K, points to significant upside potential in the coming weeks,” said Nick Rook, director of research at LVRG.

“BTC looks set to move higher soon, technical indicators point to a recent consolidation.”

“This move from Bitcoin looks very promising,” said analyst ‘Sykodelic'.

He pointed out that on-balance volume (OBV) was created by spot accumulation from an all-time high of $126,000 and lows from the surrounding region. The analyst was using $94,500 as resistance, but if it holds support at $94,000, the momentum could quickly reach $98,000 to $100,000.

This Bitcoin movement looks very promising.

Now the OBV is here from both the downtrend from $126k and the bottom of the area.

Driven by buying on the spot, it wants a positive flip with Coinbase's premium.

Let us look up and… pic.twitter.com/RJSS1TR2J8

— Psychedelic 🔪 (@Sykodelic_) January 5, 2026

You may also like:

BTC Price Outlook

Bitcoin was easing from a multi-week high of $94,600 on Monday and had fallen to $93,820 in Tuesday morning's Asian trading session.

The institutions are leading again, with panicked retailers selling out any small pump and holding a large rally. The asset has gained 7% this year in less than a week, so it's a positive start to 2026 after the turmoil of 2025.