Bitcoin, analysts said, benefited from its safe-haven narrative, short-covering near key levels of $91,500-$93,000, and robust stablecoin inflows
Crypto markets kicked off the week on a positive note, showing signs of investor optimism. Bitcoin (BTC) reclaimed the $93,200 level for the first time since December 11, while Ethereum (ETH) surged above $3,200.
This rebound came despite heightened geopolitical tensions following the US strike on Venezuela, which often pressures risk assets. Bitcoin, analysts said, benefited from its safe-haven narrative, short-covering near key levels of $91,500-$93,000, and robust stablecoin inflows, highlighting its resilience ahead of the reopening of traditional markets.
Institutional interest, technical strength boost momentum
Institutional interest is rising, according to Riya Sehgal, research analyst at Delta Exchange, who pointed to PwC’s growing engagement in the crypto space. Bitcoin Core development also remains strong, with 135 contributors projected for 2025. Sehgal described the market tone as constructive, noting that BTC and ETH showed strong technical setups, though geopolitical risks and reactions from traditional finance could impact near-term volatility.
Meanwhile, the CoinSwitch Markets Desk suggested that Bitcoin’s price rise was largely driven by a liquidation flush, with around $180 million in futures positions, mostly short positions, liquidated by yesterday afternoon. This triggered buybacks as prices surpassed $91,000, pushing the momentum higher. The desk added that while political headlines from Venezuela created short-term volatility, they did not signal a shift in fundamentals.
Currently, Bitcoin has retreated slightly from the $93,000 mark, trading at $92,623.23, up 1.36 per cent over the past 24 hours, with a trading volume of $34.15 billion as of 10:52 AM on Monday, January 5, according to CoinMarketCap. The asset has fluctuated between $90,877 and $93,204 during the session. Ethereum mirrored Bitcoin’s movement, trading at $3,163, up 0.34 per cent, with a 24-hour volume of $16.8 billion and intraday fluctuations between $3,119 and $3,211.
Also Read
In emerging markets, we focus on necessities, must-have items: Tak Leepremium
Cryptocurrency market shows resilience, but consolidation continues
RBI reiterates cautious stance on crypto assets, stablecoins for stability
Crypto in 2026: Analysts predict stability and growth amid regulatory shift
RBI flags stablecoin risks, urges countries to prioritise CBDCs over crypto
On the technical front, BTC broke out of a symmetrical triangle on the 2-hour chart, testing resistance between $93,000 and $94,000. Sehgal noted that a sustained breakout could target $96,000 to $97,500, with support at $91,500 and $90,000. “Liquidity clusters indicate potential fakeouts below $88,000, while thin order books above $95,000 leave room for rapid upside,” she added. ETH remains bullish, facing resistance between $3,200 and $3,250, with support at $3,050 to $3,000.
Akshat Siddhant, lead quant analyst at Mudrex, highlighted that if BTC closes above $93,700, momentum could push it towards $100,000, with support forming near $88,500. Siddhant also pointed out the strong institutional interest fueling the rally, noting that crypto ETFs saw net inflows of around $646 million on the first trading day of the year after December’s heavy selling. “Sentiment is improving, as the Fear & Greed Index turned neutral for the first time since October,” he added.
Altcoins show mixed performance
Among altcoins, Artificial Superintelligence Alliance, Virtuals Protocol, Render, Pepe, Bonk, Pudgy Penguins, Stacks, SPX6900, Shiba Inu, Hyperliquid, FLOKI, Cronos, Celestia, Aerodrome Finance, Injective, Story, Flare, XRP, NEAR Protocol, Cosmos, Starknet, Hedera, Internet Computer, Algorand, Ethereum Classic, PancakeSwap, Polygon, VeChain, Arbitrum, and Jupiter were the top gainers, trading with gains of up to 18 per cent, according to CoinMarketCap. Conversely, MYX Finance, Canton, Pippin, Midnight, Morpho, Zcash, UNUS SED LEO, Pump.fun, Monero, World Liberty Financial, Immutable, Quant, Sei, Ether.fi, MemeCore, Sui, Dogecoin, Sky, OKB, Polkadot, Toncoin, Litecoin, Nexo, GateToken, and Tezos faced selling pressure, dropping as much as 15 per cent.
More From This Section
India’s crypto market in 2025: Adoption grows while regulations stay vague
Bitcoin’s 2025 ride: Record highs, sharp corrections, ceaseless volatility
Macro trends, Fed policy drive crypto’s wild ride; check what lies ahead
Crypto markets hold steady as investors digest Bank of Japan’s rate hike
Oversold and volatile: Bitcoin fails to find floor as market stress holds
Read more on Business Standard
