Ted Hisokawa
Jan 08, 2026 10:05
Bitcoin enters 2026 with reduced profit-taking and renewed risk appetite, facing key recovery thresholds for sustained growth, according to Glassnode.
Bitcoin (BTC) has stepped into 2026 with a marked improvement in market structure following a significant year-end reset. This development has led to an easing of profit-taking pressure and a cautious rebuilding of risk appetite, according to Glassnode.
Market Dynamics and Key Thresholds
The cryptocurrency market is currently experiencing a transition from defensive deleveraging to selective re-risking. On-chain metrics indicate a stabilization at the lower end of the current range, with significant overhead supply still capping breakout attempts. The importance of reclaiming key recovery thresholds remains critical for confirming a sustained upside.
Corporate treasury demand continues to provide support, although sporadically, while US spot ETF flows are beginning to show signs of renewed institutional interest. Futures open interest has stabilized, indicating a potential resurgence in institutional participation.
Profit-Taking Pressure and Overhead Supply
As 2026 begins, Bitcoin has managed to break out from a prolonged compression around the ~$87,000 level, climbing approximately 8.5% to reach $94,400. This movement follows a notable decrease in profit-taking pressure, which had previously been a significant anchor on price action. The easing of sell-side intensity has allowed the market to stabilize and support renewed upside momentum.
However, the market now contends with rising breakeven sell-side pressure from recent top buyers, whose cost basis is densely distributed between $92,100 and $117,400. This creates a natural resistance point for further price increases, necessitating time and resilience to absorb this overhead supply for sustained bullish progress.
Institutional and Derivative Market Insights
Institutional demand is beginning to reassert itself as a constructive force in the market. ETF flows have shifted back into positive territory, providing early structural support beneath Bitcoin’s price. Similarly, futures open interest is recovering, suggesting a renewed willingness among derivatives participants to engage with the market.
The options market has also seen a significant reset, with open interest falling dramatically at the end of 2025. This has removed structural hedging constraints, offering a clearer read on current market sentiment. Implied volatility has likely bottomed, with early-year demand gently lifting the volatility surface.
Outlook and Future Considerations
As the market enters 2026, the transition from a defensive stance to selective re-risking is evident. While structural accumulation remains measured, the clearing of positioning overhangs and a shift toward upside participation suggest that Bitcoin is on a cleaner footing. The market’s internal structure is showing signs of improvement, with renewed optionality for expansion.
Overall, Bitcoin’s ability to reclaim and sustain key cost-basis levels will be crucial for confirming a move out of the previous bearish phase into a regime of durable demand. Monitoring these dynamics will be essential as the year progresses.
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Source: https://blockchain.news/news/bitcoin-begins-2026-renewed-market-stability-optimism
