Bitcoin Surges Past $90,000: Traders Bet on New Year Rebound

Bitcoin broke back above $90,000 during Asian trading hours, marking one of its strongest sessions in weeks and raising hopes for a fresh upside push after missing the traditional year-end “Santa rally” that propelled global equities to records.

The rebound extended across major digital assets, with Ethereum jumping over 3% to reclaim $3,000 and XRP adding nearly 2%.

Holiday Rally Miss Turns into Early 2026 Momentum

Bitcoin had largely traded sideways while U.S. stocks powered to all-time highs pre-Christmas. The S&P 500 closed at record levels, but crypto lagged amid lingering caution from October’s sharp correction.

Monday’s move—Bitcoin up as much as 3.1% to above $90,200—suggests shifting sentiment. Sebastian Bea, CIO at ReserveOne Inc., attributed part of the strength to retail traders increasing futures exposure. “This appears partly driven by short-term retail traders adding long positions in futures,” Bea noted.

Funding rates climbed to their highest since October 18, signaling growing bullish bias in perpetuals, while open interest rebounded from recent lows.

Technical Setup: Key Levels in Focus

Bitcoin’s daily chart shows the asset trading within a symmetrical triangle after the post-October pullback.

A decisive close above the 50-day EMA near $92,202 could confirm a breakout, targeting $96,846 (November high) and the 200-day EMA around $101,029.

Support holds near the triangle lower trendline at $86,250. A break lower would reinforce bearish control.

Current price action reflects renewed risk appetite, though volume remains moderate in holiday-thinned markets.

Broader Market Context: Crypto vs. Equities Divergence

While crypto consolidated, traditional markets delivered strong year-end gains. The Nasdaq and S&P 500 benefited from AI optimism and rate-cut expectations, highlighting a temporary disconnect.

Analysts view crypto’s lag as healthy digestion after 2025’s volatility, with institutional infrastructure (ETFs, custody) now positioned to absorb future inflows.

Outlook: Ingredients for a 2026 Crypto Rebound

Several factors support potential momentum into the new year:

• Easing monetary policy expectations (Fed cuts priced for 2026)
• Improving regulatory clarity
• Reset leverage and sentiment after October washout
• Seasonal January effect historically favoring risk assets

Bea cautions that sustained upside requires broader participation and stronger spot demand.

For now, Bitcoin’s push above $90,000 serves as a psychological milestone. Whether it evolves into durable recovery or remains a short-term bounce will depend on post-holiday liquidity and macro confirmation.

As 2026 approaches, the crypto market appears poised for a potential reacceleration—provided risk appetite returns and institutional flows resume.