Zooming out, the market appears to be forming a bottom.
From a sentiment standpoint, the market has rebounded by roughly 20 points, thereby moving out of the “fear” zone. Notably, this shift is clearly reflected across risk assets, with the TOTAL market rising by around 7%.
Against this backdrop, Bitcoin [BTC] price consolidating around $90k appears constructive, resembling a textbook consolidation range that could ultimately pave the way toward six-figure levels.
That said, expecting a clean, linear move higher still feels premature.
On the 6th of January, Bitcoin price dropped $3k, leaving a long lower wick down near $91k.
The result? Yet another liquidity sweep triggered close to $440 million in total liquidations, with roughly 70% of the losses incurred by long positions.
In essence, BTC has not yet fully shaken off its volatility. In this context, keeping an eye on liquidity is key. And from the looks of it, the Bitcoin price may still need to grab more liquidity before a proper reversal can happen.
Weak bid under Bitcoin price signals caution
The divergence between Bitcoin price and market flow is becoming clear.
At the macro level, BTC ETFs have broken the inflow streak of the past two days, posting a Net Outflow of $244 million across five ETFs. In fact, this marks the first net outflow of 2026, signaling a weak institutional bid.
Meanwhile, Bitcoin dominance [BTC.D] has broken down with three red weeklies, while the TOTAL market cap continues to climb. This inverse move indicates capital is flowing into alts, putting a cap on Bitcoin price.
Taken together, the setup suggests we’re not yet at a BTC bottom.
Why it matters: Buying support under the Bitcoin price remains weak, keeping long-term traders under pressure. Sure, BTC has absorbed most of the downside liquidity after holding $90k, but it hasn’t formed a clear base yet.
In this context, a pullback looks likely before Bitcoin can push higher.
First, BTC needs a clean retest of $90k to stabilize price and shake out overexposed longs after which the way toward near-term resistance around $95k opens up, setting the stage for a potential run toward six-figure levels.
Final Thoughts
- Bitcoin price hasn’t formed a clear base yet, with weak buying support and long positions at risk; a pullback toward $90k is likely.
- Capital flowing into altcoins is capping Bitcoin, but a clean $90k retest could set the stage for a move toward $95k and eventually six-figure levels.
