Bitcoin prices, currently consolidating within a well-defined range, are likely on the verge of a breakout, as highlighted by a technical indicator noted by a market analyst. “The Bollinger Bands squeeze (bands narrowed to under $3,500 – the lowest since July 2025) signals an imminent volatility breakout,” Marcin Kazmiercźak stated. The technical indicator mentioned, Bollinger Bands, assists those interested in assessing whether an asset is overpriced or underpriced. Analysts assess these bands by calculating the simple moving average of an asset, subsequently drawing lines above and below that average, which represent a standard deviation higher and lower, respectively. Kazmiercźak also cited other technical indicators, stating that “Bitcoin recovered to $91,463 by January 12, testing resistance at $92,100-$92,200 (the 20-EMA), while defending support in the $90,000-$91,000 zone.”
“Current RSI sits at 51.90 (neutral), reflecting a compressed volatility structure after Bitcoin traded sideways between $85,000-$94,588 for weeks,” he stated, referencing the Relative Strength Index, a tool aimed at informing stakeholders about the oversold or undersold status of an asset. The analyst provided insights that illuminated significant developments within the crypto markets. “Bitcoin’s consolidation in early January 2026 masks a significant technical inflection point where institutional positioning and on-chain metrics diverge from price action,” he stated. “The year kicked off with $1.2 billion in spot ETF inflows over January 2-3 (a $150 billion annual pace), only to see a $243 million outflow on January 6 as profit-takers stepped in – a common trend during tight consolidations.”
Wendy O also addressed the notable advancements that have emerged in the digital asset markets in recent weeks. “A lot has happened since the beginning of 2026,” she remarked. “Crypto and Bitcoin censorship on X, the investigation into Powell, and Bitcoin have effectively maintained support within the range of $86,000 to $94,000.” Multiple market analysts offered further technical insights. Jake Kennis noted that “Bitcoin continues to consolidate within a rising structure and has successfully avoided a bear flag breakdown, a constructive but not explicitly bullish signal. Momentum indicators remain neutral, suggesting the market is awaiting confirmation from macro data or renewed inflows,” he stated.
The technical analyst pointed out several potential scenarios, noting “key resistance” at “$94,000–$95,000,” which he referred to as the “Upper boundary of the current range; a sustained breakout is needed to restore bullish momentum.” Kennis highlighted crucial support levels, noting “$88,000–$89,000” and “$85,000–$86,000.” “The market is basically in wait and see mode,” said Vincent Liu. “Bitcoin is consolidating near a key psychological level as markets await clearer macro and liquidity signals.” He stated “Institutional flows remain constructive, but a decisive catalyst is needed to confirm the next directional move.” Liu added “From a technical analysis perspective, BTC is compressing within a well-defined range, with $88K–$90K acting as a key demand zone and $94K–$95K capping upside as range resistance. A high-volume daily close above resistance would confirm a bullish continuation.”