Bitcoin Surges Past $97,000 as Markets Set Sights on $100,000 Milestone

Bitcoin Breaks Through Key Resistance Levels

Bitcoin's price rally accelerated into mid-January, with the cryptocurrency surging past $97,000 to reach its highest level in approximately eight weeks ^[1][3]. The advance marks a significant breakout from a multi-week trading range that had kept prices near the low-$90,000 level or lower for the previous two months ^[3].

The rally triggered substantial market activity, with roughly $700 million in short liquidations occurring as the price climbed through key resistance zones ^[3]. Trading data showed that when Bitcoin pushed above $95,300, approximately $270 million in short positions were liquidated, shifting the next significant liquidity cluster to the long side ^[1].

Strong Technical and Market Indicators

Onchain metrics suggest the rally is gaining sustainable momentum. The Coinbase Premium Index showed reduced selling pressure from US-based investors between January 6 and January 11, with the pace of selling clearly slowing despite the index remaining net-negative ^[1]. Additionally, the seven-day average of Bitcoin inflows to Coinbase Advanced reached approximately 2.5 times its baseline level, a pattern that has historically preceded price appreciation tied to spot accumulation, over-the-counter settlement, or exchange-traded fund positioning ^[1].

Derivatives markets provided further confirmation of strengthening bullish conditions. Binance net taker volume briefly exceeded $500 million in a single hourly period, indicating aggressive market buying ^[1]. This expansion occurred alongside rising open interest, a combination that has historically aligned with trend continuation rather than reversals ^[1].

Bitcoin's hourly funding rate dropped to its lowest level since October 17, 2025, reflecting crowded short exposure and cautious leverage usage ^[1]. As funding normalized, the price rallied sharply, suggesting short positions were forced to unwind ^[1].

Resilience Despite Inflation Data

The cryptocurrency's advance occurred even as macroeconomic data presented potential headwinds. Producer Price Index inflation for November 2025 came in at 3%, significantly above the anticipated 2.7% ^[2]. The Bureau of Labor Statistics attributed the November increase to a 0.9% advance in final demand goods prices ^[2].

Higher inflation typically implies stricter economic policy reactions from the Federal Reserve and reduced liquidity for risk assets ^[2]. However, Bitcoin bulls showed little interest in slowing the rebound, with markets having already priced in a pause in interest rate changes at the Fed's January meeting ^[2].

Separately, the Consumer Price Index report released on January 13 showed inflation moderating, easing fears of aggressive monetary tightening and boosting risk-on sentiment in global markets ^[3].

Institutional Interest Returns

Institutional demand has reemerged as a significant driver of the rally. Spot Bitcoin exchange-traded funds recorded notable inflows, with figures suggesting the largest net inflows since late 2025 ^[3]. Major corporate holders also contributed to the momentum, with Strategy Inc. announcing a $1.3 billion Bitcoin acquisition in the days leading up to the price surge ^[3].

Path to $100,000

Market sentiment is increasingly focused on the psychological $100,000 level. Polymarket now estimates a 73% chance that Bitcoin will reach $100,000 in January ^[3]. From a technical perspective, the next major supply zone sits between $103,300 and $107,500, with notably thin overhead resistance between $95,000 and $103,300 ^[1].

Trader and analyst Rekt Capital emphasized the importance of Bitcoin holding above $93,500 heading into the weekly close, noting that this would position the cryptocurrency for a potential repeat of rebounds seen in November 2024 and April 2025 ^[2]. Last April, Bitcoin briefly dipped below $75,000 due to tariff-related news before embarking on a 50% bull run over the following weeks ^[2].

On the downside, the $92,500 to $90,000 region represents a key support zone where Bitcoin could establish its next higher low, with holding that area strengthening the case for a sustained push above $100,000 before month-end ^[1].