The 1st Bitcoin Technical Analysis of Year 2026 and Bulls are Back.

Bitcoin Breakout and Support Levels

Bitcoin futures have started 2026 with a bullish momentum, rising about 3.3% from Friday's close. Particularly, the decisive break above a multi-touch resistance zone dating back to November 2025 signifies a strong bullish signal. On the 4-hour chart, the Value Area High near 89,600 is holding as key support, and maintaining this level could facilitate the continuation of the bullish trend. Moreover, as long as Bitcoin stays above the Point of Control at 88,000, the breakout remains valid, highlighting its importance. A retracement toward approximately 90,650 would still remain constructive rather than bearish.

Market Participants' Behavior and Analysis

There has been a notable shift in market participant behavior, especially with significant institutional absorption. While there was bearish sentiment last Friday, the ensuing rebound indicates a meaningful reversal. The 92,800 level is acting as a protective barrier known as 'The Guardian', and breaching it could signal a bearish scenario. The stability of prices around the VWAP is essential for subsequent upward moves, particularly if price can reclaim 93,500, trapping recent sellers and triggering rapid moves.