- Bitcoin has gained about 10% early in January after a deep 2025 correction.
- Crypto Fear and Greed Index at 27 signals fear, historically linked to market bottoms.
- The $100,000 level remains the key threshold that could shift market momentum.
Bitcoin is gaining ground at the start of the year, rising about 10% in its first week and trading close to levels that some analysts see as a gateway to a new all-time high.
Crypto analyst Michael van de Poppe said Bitcoin’s recent strength comes despite widespread talk that 2026 could turn into a bearish year for digital assets.
Several factors are now lining up that could push prices back toward six figures.
Extreme Fear Has Often Marked Market Bottoms
One of the strongest signals comes from market sentiment. The Crypto Fear and Greed Index recently dropped to 27, indicating fear.
Historically, such fear has appeared close to important price lows rather than market tops. In past cycles, buying during these periods has often been followed by strong rebounds, as negative expectations proved overdone.
The Recent Correction Reset Valuations
Bitcoin’s decline in late 2025 was deep by historical standards, even when compared with previous market crashes. The analyst said that valuation indicators fell to levels rarely seen before, suggesting much of the excess optimism had already been cleared from the market.
That reset has made Bitcoin look more attractive to longer-term investors, especially as prices stabilised and began to recover.
ETF Inflows Return After Year-end Selling
Another driver is the return of institutional demand. Bitcoin exchange-traded funds saw heavy outflows toward the end of last year, largely linked to tax planning and portfolio rebalancing.
Since January began, more than $1 billion has flowed back into Bitcoin ETFs, helping lift prices toward the mid-$90,000 range.
Bitcoin Looks Cheap Relative to Gold
Bitcoin’s performance relative to gold has also made headlines. While gold surged through the second half of last year, Bitcoin lagged, pushing its valuation against gold to the lowest level since late 2023.
Source: X
For wealth managers, this kind of gap often leads to portfolio rotation, trimming assets that have run far and adding exposure to those that have underperformed. That process could support further capital moving into Bitcoin.
$100,000 Seen as Decisive Level
According to van de Poppe, the area around $100,000 is the most important level to watch. A sustained move above it would place Bitcoin back into the trading range it held for much of last year.
Related: Bitcoin’s Latest Move Highlights Change in Cycle Dynamics
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Source: https://coinedition.com/four-reasons-bitcoin-could-be-back-on-track-for-six-digit-once-again/
