Bitcoin Surges Past $96,000 on Spot Buying, Analysts Eye $100K Target

Spot Buying Powers Rally Above $95,000

Bitcoin experienced a significant price surge on Tuesday, climbing above $95,000 and later pushing past $96,000, marking a decisive break from weeks of range-bound trading. The rally was primarily attributed to genuine spot buying activity rather than derivatives-based speculation.

"Seems like this rally on Bitcoin is led by spot buying," crypto analyst Will Clemente noted in a social media post on Tuesday ^[1]. Over a 24-hour period, Bitcoin rallied 4.65%, reaching $95,190 according to one report ^[1], while another source indicated the price climbed to approximately $96,000, representing a roughly 4.4% gain ^[2].

The price movement is considered particularly bullish because spot buying reflects investors purchasing the underlying asset directly, rather than paper contracts such as futures or options that can artificially inflate prices without corresponding real demand ^[1].

Short Squeeze Adds Fuel to Rally

Traders betting against Bitcoin were caught in a significant squeeze, with $269.21 million in short positions liquidated during the rally ^[1]. The breakout propelled Bitcoin beyond the upper boundary of January's consolidation range, with the price sitting approximately 5% above its seven-day low near $91,700 ^[2].

Trading volume reflected renewed market participation, climbing to roughly $55 billion over the 24-hour period ^[2]. Bitcoin's total market capitalization rose to approximately $1.92 trillion, with circulating supply standing at just under 19.98 million BTC ^[2].

$100,000 Target "Quite Clear" Says Analyst

MN Trading Capital's Michaël van de Poppe expressed confidence in further upside, stating in a social media post that it is "quite clear that this is going to run to $100K in the coming week and that dips are for buying" ^[1]. He added that "the bull market hasn't died, it's about to start" ^[1].

Bitcoin has struggled to reclaim the $100,000 level since falling below it on November 13 of last year ^[1]. According to crypto prediction markets platform Polymarket, Bitcoin currently has 51% odds of reaching $100,000 by February 1 and a 23% chance of hitting $105,000 ^[1].

Historical patterns suggest potential for continued strength, with January averaging a modest 4.18% gain since 2013, while February has typically delivered stronger performance with an average return of 13.12% ^[1].

Sentiment and Market Structure

Crypto sentiment platform Santiment suggested that a return to six-figure prices could spark renewed market excitement. "There will likely be retail FOMO creeping in if crypto's top asset begins teasing $100K in the next few days," the platform stated ^[1].

Market sentiment has remained largely negative since early November, following a significant $19 billion liquidation event on October 10 ^[1]. The Crypto Fear & Greed Index has fluctuated between "fear" and "extreme fear" during this period, posting a "fear" score of 26 on Wednesday ^[1].

Strategy Stock Gains Alongside Bitcoin

Shares of Strategy (MSTR) climbed 6.63% to close at $172.99, extending gains to $177.00 in after-hours trading ^[2]. On January 12, Strategy announced the acquisition of 13,627 bitcoin for $1.25 billion, bringing its total holdings to 687,410 BTC ^[2]. The purchases were made between January 5 and January 11 through the company's at-the-market offering program ^[2].

If Bitcoin maintains acceptance above $96,000, analysts note that the next major resistance zones sit between $98,000 and $104,000 ^[2].