Cryptocurrency Market Tipping Point: Technical Indicators Suggest a Bull Market is Brewing

As we approach 2026, the digital asset market presents a subtle duality. On the surface, there are no major waves, but the technical indicators are hinting at larger changes brewing beneath. Currently, Bitcoin(BTC) is priced at 90.69K, with a 24-hour change of -0.11%. Beneath the seemingly calm chart, what signals are actually being hidden?

Three Key Technical Breakthrough Signals

The core resistance level for Bitcoin remains near $90,000. Since mid-December, the bulls have encountered setbacks at this zone four times, while the support at $84,000 remains solid. Analysts are focusing on a critical question: if BTC can stabilize within the $90,000 to $92,000 range, does this indicate that upward momentum is truly being activated?

Another closely watched technical pattern is the descending expanding wedge. Some analysts believe BTC is at a critical point to break out of this wedge. A successful breakout could not only push prices to a new all-time high near $122,000 but also generate a strong bullish sentiment in January. Although the bullish flag pattern targets $75,000 and below, a decisive breakout above resistance could effectively mitigate the downside risk.

Most notably, the emergence of a hidden bullish divergence is worth attention. Recently, the chart shows prices making new lows while technical indicators do not follow suit, a divergence often signaling an impending reversal. Once BTC confirms a move above $90,360, it will lay a solid foundation for the upward trend at the start of 2026.

Shifts in Institutional and Retail Demand

Improved policy environments are driving changes in capital flows. Since the new leadership took office, regulatory pressure on crypto assets in the US has noticeably eased, and banks along with traditional financial institutions are gradually entering the space. This shift is directly reflected in ETF capital flows—2024’s election year has driven record inflows into spot ETFs.

The premium index on US retail trading platforms has shown positive changes, indicating a rebound in retail investor demand. If ETF inflows accelerate again in 2026, it will serve as an important signal for the initiation of an upward trend. This not only signifies rising prices but also indicates an optimization of market participant structure.

Policy and External Risks Still Require Vigilance

Despite optimistic signals from technical and capital perspectives, real-world factors continue to exert pressure. Upcoming high court tariff rulings could introduce market volatility, and MSCI’s decision to classify crypto reserve companies as funds has also triggered sell-offs among investors.

January may still be filled with unpredictable surprises, but as May approaches, expectations of the Federal Reserve’s easing policies and favorable economic policies for crypto assets could usher in a new upward cycle. In other words, short-term volatility does not alter the long-term trend; the key lies in whether the market can effectively break through critical technical resistance levels.