Cryptocurrency analyst TARA has forecast that Bitcoin will rally above $99,000 despite recent bearish signals. According to analysis published by NewsBTC, Bitcoin is expected to reach the target price level before experiencing a deeper retracement, which would prevent the correction from breaking critical support levels. TARA noted that retracement levels will continue to be adjusted, with a projected 2026 high above previous peaks, according to the analysis.
Cryptocurrency traders are currently positioning for a rally past major resistance levels toward the six-figure psychological threshold, following a recent price increase after softer-than-expected Consumer Price Index inflation data was released earlier this week. Spot Bitcoin exchange-traded funds have also contributed to the early-year price surge, according to market observers.
Bitcoin ETFs Show Strong Inflows
Bloomberg analyst Eric Balchunas reported that Bitcoin ETFs recorded strong net inflows recently and now show robust one-week and year-to-date inflows. With Bitcoin rallying after trading sideways toward the end of last year, Balchunas suggested that buyers may have exhausted sellers, according to his analysis.
Arthur Hayes Predicts Sustained Rally Driven by Dollar Liquidity
In a recent blog post, BitMEX co-founder Arthur Hayes predicted that the rally could be sustained as dollar liquidity rapidly increases. Hayes expects dollar liquidity to grow as U.S. President Donald Trump pursues measures to inject liquidity into the economy, including plans to lower mortgage rates, which could spur additional borrowing.
Hayes stated that liquidity conditions in 2025 did not support cryptocurrency portfolios, which contributed to lagging performance. He cautioned against interpreting this as a cyclical bear market rather than a liquidity-driven phenomenon. Additional liquidity could flow into the market if Trump nominates a rate-cut advocate to replace the Federal Reserve chair, potentially leading to larger rate cuts that would be favorable for Bitcoin and the broader cryptocurrency market, according to Hayes.
Market Performance at Time of Reporting
At the time of reporting, Bitcoin was trading lower over the previous 24-hour period.