The Crypto Market Has Hit the Upper Limit of its Rebound
By Alexander Kuptsikevich | Published: January 07, 2026
Market Overview
Bitcoin has recently tested the upper limit of its trading range, reaching $95,000 before experiencing a drop to $91,000 and recovering to $92,600. This fluctuation indicates that the market is facing significant resistance at these levels, particularly as the total cryptocurrency market capitalization approaches $3.2 trillion.
The current market recovery, which began in early December, has stalled at these resistance levels, leading to cautious selling pressure. Analysts suggest that while the sentiment index has improved, moving from a fear zone to neutral territory, the overall outlook remains cautious due to the strong resistance from bearish traders.
Bitcoin's Performance and Market Sentiment
Despite the recent price movements, the risks of a substantial decline in Bitcoin's value appear limited. The prevailing sentiment indicates that 2026 may be characterized by consolidation and sideways movement, as noted by VanEck. The recent inflow of nearly $2.4 billion into Bitcoin and Ethereum on the Binance exchange suggests that holders may be looking to sell their assets, reflecting a cautious market sentiment.
Interestingly, the activity of crypto whales has been misrepresented; their buying activity is often overstated due to the consolidation of funds from smaller wallets into larger ones for regulatory compliance, as explained by CryptoQuant.
Technical Indicators and Future Outlook
A rare buy signal has emerged on the weekly Bitcoin chart, according to the McMillan Volatility Band indicator. Historically, such signals have coincided with successful buying points, indicating potential for future price increases.
In the Ethereum network, a new record for stablecoin transfers was set, exceeding $8 trillion in the fourth quarter of the previous year, nearly doubling in volume over six months. This growth reflects increasing activity and interest in the cryptocurrency space.
Starting this year, new regulations require crypto services in 48 countries to collect and exchange information on cryptocurrency transactions, aimed at enhancing tax revenues among OECD member states.