Bitcoin Retests Key Support as Bulls Reset for Potential Futures-Driven Push to $101.5K

Bitcoin is once again testing an important support level after failing to sustain a breakout above $95,000. Despite the pullback, derivatives data and improving market structure suggest that bulls may be repositioning for another futures-led advance—potentially targeting the $101,500 region.

Bitcoin Starts 2026 With Strengthening Market Structure

The opening days of 2026 saw Bitcoin and select altcoins rebound toward their weekly range highs, supported by improving investor sentiment and rising trading volumes.

Since Jan. 1, Bitcoin has displayed:

• Higher lows and higher highs on the daily chart

• A steady tightening of price consolidation

• A push to a weekly high near $94,800

This structure reflects a market transitioning from recovery into trend continuation, even as short-term resistance remains intact.

Liquidation Heatmap Highlights Key Levels

According to Hyblock’s 7-day liquidation heatmap, the market is currently defined by two major liquidity zones:

• Long liquidation clusters: $89,000–$87,000

• Short positions: Concentrated near $95,000, the top of the weekly range

These levels are now acting as magnets for price action, influencing both downside support tests and upside breakout attempts.

Moving Averages Signal Healthy Reset

From a technical perspective, Bitcoin’s early-year rally pushed price back above the 20-day moving average, which is now converging with the 50-day moving average—a setup often associated with trend continuation.

After BTC failed to hold above $95,000 and trigger mass short liquidations, many traders appear to have taken profits. This has led to a controlled pullback toward the 20-day MA near $89,400, a level that now serves as key dynamic support.

As long as this level holds, the broader bullish structure remains intact.

Futures Activity Driving Price Action

Recent price movement has been heavily influenced by perpetual futures traders, rather than spot-driven demand.

On Jan. 5, as Bitcoin surged toward $94,800:

• Futures buy volume spiked by nearly $1.1 billion

• Approximately $100 million in short positions were liquidated on the BTC/USDT pair at Binance

This data, sourced from TRDR.io (http://trdr.io/), highlights how leverage continues to play a dominant role in short-term BTC price discovery.

Bullish Scenario: $95K Break Could Trigger Rally to $101.5K

If current support holds and volume expands, Bitcoin could make another attempt on the $95,000 resistance in the coming days.

A decisive push above this level would likely:

• Trigger short covering and forced liquidations

• Exploit a visible low-volume gap in the BTC/USDT (Binance) volume profile

• Enable a potential 13% rally, targeting $101,500

Liquidation heatmap data and order book structure suggest that pressing price toward $94,000–$95,000 could once again ignite a cascade of futures-driven buying.

What to Watch Next

Key levels and signals to monitor:

• Support: $89,400 (20-day MA)

• Liquidity magnet: $95,000

• Bullish breakout target: $101,500

If Bitcoin maintains acceptance above key moving averages, pullbacks should be viewed as structural resets, not trend failures. However, a sustained breakdown below $87,000 would weaken the near-term bullish case.

Conclusion

Bitcoin’s current pullback appears less like rejection and more like preparation. With futures positioning resetting and liquidity still stacked above price, bulls may be gearing up for another attempt at clearing resistance. A successful breakout could rapidly shift momentum toward six-figure territory.