Bitcoin (BTC) continued its early-year advance on Tuesday, holding firm above $94,000 as traders respond to improved risk appetite and broader crypto strength.
Price action has been signalling a shift from late‑December sideways trading as demand re-emerges following sustained selling and tax‑loss harvesting.
By 10:100 GMT, Bitcoin was trading around $93,478.20, up modestly over the last 24 hours, underpinned by rising trading volume and renewed interest in larger time-frame breakouts.
Analysts point to stabilisation above key support levels as a sign that Bitcoin could sustain its run, although liquidity remains relatively light compared with norms.
Investors are weighing a mix of drivers, with improved risk sentiment across markets lifting Bitcoin alongside equities while geopolitical developments continue to influence risk appetite, and institutional flows into spot Bitcoin ETFs providing additional support to the move higher.
Despite the cautious backdrop, the technical picture suggests that prices are making higher lows and short positions have been getting flushed as Bitcoin pushes through resistance, and heavy liquidations of leveraged bets indicate positioning imbalances are being resolved.
Ethereum and XRP have also joined the broader uptick, with Ether trading above $3,200 and XRP trading at $2.00 as ETF-linked flows continue to gather pace. Recent gains highlight a wider risk-on rotation within digital assets.
However, markets are not without warning signs. Spot trading activity on major exchanges shows muted volume, the weakest readings in months, suggesting that the recent advance could be fragile unless broader participation returns.
The next major hurdle sits at $95,000, a level that previously triggered heavy selling and will test whether buyers can push through.