2026 Kickoff: Crypto Market Shows Resilient Rebound, Bitcoin Leading the Way

January 5, 2026 – The broader cryptocurrency market has gained traction as 2026 gets underway, with Bitcoin and major altcoins rebounding sharply from late-2025’s deep pullback. Bitcoin, which fell 6% cumulatively in the final stretch of 2025 and missed expectations tied to the traditional “four-year cycle,” reclaimed the key psychological level of $90,000 on January 4. Analysts note the $88,000 range emerged as strong support amid thin liquidity during the holiday season, while inflows into spot ETFs have shifted market sentiment from “panic” to “cautious optimism.” As of early Monday, Bitcoin traded above $92,000, with its 100-hour moving average holding a bullish structure. The next key resistance level sits at $95,000. Bitcoin’s stability has also lifted the broader market: Ethereum and XRP, among others, have seen synchronized modest gains as institutional funds begin rebalancing portfolios for the new fiscal year. On the macro front, slowing inflation and the U.S. economy’s resilience are key tailwinds. Though 2025’s anticipated halving rally failed to materialize as expected, the market structure has shifted to institutional leadership, with volatility and emotional trading notably reduced. The expansion of U.S. Treasury-backed stablecoins is viewed as a critical channel for international capital re-entering the crypto ecosystem. Looking ahead to 2026, most analysts remain medium-to-long-term bullish. They expect Bitcoin to gradually target the $120,000–$150,000 range, driven by ongoing institutional allocations and tightening available supply on exchanges. In the short term, the market may trade sideways in January, but as long as prices hold above the key support level of $91,500, the path to challenging all-time highs in Q1 remains open.