Bitcoin has recently shown signs of a potential surge, reclaiming its 21-day moving average and trading near the $90,000 resistance level. Currently, it is positioned for a possible breakout that could lead to prices as high as $100,000. Historical patterns, technical indicators, and broader market trends suggest a rally of approximately 30% could occur despite potential short-term volatility.
As of now, Bitcoin is trading within a defined range between $84,000 and $90,000. The immediate focus for traders lies on the $90,000 to $92,000 resistance band. A decisive break above this level could pave the way for a quick rise to $95,000, with $100,000 becoming a key psychological target.
Factors Supporting a Potential Bitcoin Rally
Several indicators are aligning in favor of Bitcoin as the market transitions into the first quarter of 2026. Notably, Bitcoin has recently recorded three consecutive monthly declines. Historically, such occurrences have often marked a turning point, with past rebounds ranging from 30% to as high as 130% following these trends.
Additionally, the Relative Strength Index (RSI) for Bitcoin recently dipped into oversold territory. Past cycles have demonstrated that similar RSI conditions typically coincide with the conclusion of significant downward trends, often giving way to upward momentum.
The performance of the Nasdaq 100 is also noteworthy. At the start of 2026, it was trading below its 50-day moving average. In previous instances where this pattern emerged, strong rallies occurred in the early months of the year, benefitting risk assets like Bitcoin.
Investor sentiment has also shifted. The US equity put/call ratio spiked towards the end of 2025, indicating a rise in investor fear and a demand for downside protection. Historically, such spikes have often signified market bottoms, with positive returns typically following in the subsequent months.
Monitoring Key Price Levels
Bitcoin formed a local low near $80,500 on November 21, 2025. Since then, the price action has remained constructive, despite some sideways movement. A successful breach of the $90,000 level on strong trading volume is crucial. If this occurs, momentum may accelerate towards $95,000, with targets above $100,000 becoming increasingly plausible.
The next week is expected to be significant, as a strong follow-through above resistance levels could confirm a new upward trend. This would bring the prospect of six-figure Bitcoin back into focus sooner than many analysts anticipate.
On the other hand, recent market analysis from Ali Charts suggests that Bitcoin may be mirroring the price behavior of NVIDIA during previous market cycles. If this correlation holds, Bitcoin might briefly dip below the $78,400 support level before staging a robust reversal.
Overall, the sentiment surrounding Bitcoin remains bullish, with numerous indicators suggesting that the cryptocurrency could soon experience a substantial rally. As the market evolves, traders and investors will be closely watching how the price reacts to these critical levels in the coming weeks.
