What is happening now
Bitcoin’s price rally has slowed down this week, with BTC struggling to maintain levels above $96,500. After reaching near $97,000 early in January 2026, the price has stalled, showing signs of hesitation among traders. Funding rates on major exchanges have flattened, indicating less appetite for leveraged bets. Retail traders appear cautious, with lower trading volumes on popular platforms. On-chain data shows wallet activity remains steady but lacks the sharp increase usually seen before a strong price move.
Why it matters
Bitcoin’s ability to hold or break through the $97,000 level could set the tone for its short-term price direction. A sustained move above this threshold might attract more buyers and encourage momentum to push BTC closer to or above $100,000. Conversely, failure to break this resistance could lead to consolidation or a pullback, impacting investor confidence. Given Bitcoin’s significant influence on overall crypto market sentiment, its price direction often affects altcoins and trading activity more broadly.
Key risks
Several risks could influence Bitcoin’s price trajectory at this juncture. Market uncertainty from geopolitical tensions and regulatory developments may dampen buying interest. The current flattened funding rates suggest traders lack conviction, which increases the risk of rapid price swings. Additionally, ongoing concerns about wallet security and potential exchange vulnerabilities could make some investors hesitant. Lastly, retail investor participation is subdued compared to past rallies, which may limit upward momentum.
What to watch next
Traders should watch Bitcoin’s behavior around the $97,000 level closely. A breakout with strong volume would be a bullish signal, especially if accompanied by increased wallet activity and higher funding rates. On the other hand, a drop below $95,000 could signal short-term weakness. Monitoring macroeconomic news and regulatory updates will also be important as these factors impact liquidity and sentiment. Finally, keeping an eye on Ethereum and Solana price movements may provide additional insight into market trends.
Quick FAQ
- Why is Bitcoin struggling near $97,000?Market momentum has slowed, and traders are cautious, causing Bitcoin to stall just below major resistance at $97,000.
- Does this weakness affect other cryptocurrencies?Yes, Bitcoin’s price movements often influence the broader crypto market, so altcoins may also experience volatility based on BTC’s trend.
- What should new investors do now?New investors should watch for clear signals of either breakout or pullback and consider safe wallet practices to protect their assets amid market uncertainty.