Bitcoin Faces Critical Test at $95,000 Resistance Level as Momentum Builds

Bitcoin's recent rally has encountered substantial resistance as the cryptocurrency approaches the $95,000 price level, where concentrated selling activity has emerged as a key obstacle to further upside momentum.

The cryptocurrency is currently trading near $94,000 after climbing approximately 8% since January 1 ^[2]. The price briefly reached an intraday high of $94,352 after opening the year around $87,400, though momentum has since weakened ^[2].

Concentrated Selling Pressure Emerges

Market data reveals significant selling interest at the $95,000 threshold, with traders identifying what has been described as a "big boy sell wall" on spot order books ^[1]. Analyst Skew identified what he termed a "passive seller" at $94,000 who has been consistently selling into price increases ^[1].

"Longs realise the subtle cue around $94K the second time and bail from positioning only for late shorts to start positioning," Skew explained in his analysis, noting that such patterns typically lead to considerable price decay ^[1].

The price action has become noticeably choppy following Bitcoin's test of $94,800 on Monday, its highest level since November 17 ^[1].

Institutional Demand Returns

Despite near-term resistance, underlying demand indicators remain robust. U.S.-listed bitcoin exchange-traded funds recorded nearly $700 million in net inflows on Monday, marking the strongest single-day total since October ^[2]. This influx represents more than 7,000 BTC, significantly exceeding the daily new issuance from miners ^[2].

On-chain metrics show approximately $1.2 billion worth of bitcoin was withdrawn from exchanges over a 24-hour period, suggesting investors are moving coins into self-custody rather than preparing to sell ^[2].

The rally has pushed Bitcoin's market capitalization to roughly $1.87 trillion, with daily trading volume hovering near $51 billion ^[2].

Derivatives Markets Signal Bullish Positioning

Options markets indicate traders are positioning for continued price appreciation. On Deribit, the world's largest crypto options exchange, the $100,000 January call option has become the most popular contract on the platform, with total notional open interest reaching approximately $1.45 billion ^[2].

Trading firm QCP Capital noted in its market update that "crypto's recent alignment with broader risk assets may signal a regime shift and the strengthening of bullish narratives to start the year" ^[1]. The firm cited the conclusion of year-end tax loss harvesting and upcoming crypto legislation as supportive factors ^[1].

Critical Weekly Close Ahead

From a technical perspective, trader and analyst Rekt Capital highlighted that Bitcoin has protected the bottom of a key range on weekly timeframes ^[1]. The cryptocurrency now needs to close above $93,500—the 2025 yearly open level—to confirm a breakout from its current range ^[1].

"It would confirm a breakout from the Range and also end the Weekly Downtrend dating to mid-October 2025," Rekt Capital told followers, adding that "~$93500 needs to hold as support for mid-term bullish bias" ^[1].

Technical support for Bitcoin currently sits near $91,400, with stronger backing around $87,000 should prices pull back ^[2]. A failure below $84,000 would weaken the near-term structure, according to market analysts ^[2].

The move higher followed weeks of sideways trading through late December, when Bitcoin struggled to break above resistance near $91,000 ^[2]. That level has since converted into short-term support, enabling the current test of the $94,000-$98,000 range ^[2].