Bitcoin Hits $96K, Nears Key Bull Market Test After Fed Rate Cut Hopes

Bitcoin’s price action on Coinbase, as tracked by TradingView, saw the cryptocurrency top $96,000 in early Asian trading, marking its highest level since November 16. This represents a significant 9% gain since the beginning of 2026, signaling that the market is moving past the fear generated by October’s record liquidation event. The immediate catalyst for the surge was political pressure on monetary policy. Following a lower-than-expected Consumer Price Index (CPI) print, US President Donald Trump publicly urged Federal Reserve Chair Jerome Powell to cut interest rates, boosting risk appetite across financial markets.

The move has reignited bullish sentiment, with analysts scrutinizing the structure of the rally. Will Clemente observed that the uptrend is “led by spot buying and getting faded by perps as funding goes negative while open interest rises.” This technical dynamic—negative perpetual futures funding rates coupled with rising open interest—suggests that short sellers are accumulating positions to bet against the rally. However, this setup also creates the potential for a powerful short squeeze if persistent spot demand, indicative of genuine buying interest, continues to push the price higher.

With the initial surge complete, market participants are focusing on several pivotal technical indicators that will likely dictate Bitcoin’s trajectory in the coming weeks. Analyst ‘Daan Crypto Trades’ highlighted the approaching retest of the bull market support band, a key trend-following indicator. “It’s moving down at a fast pace while price is attempting to grind higher,” he commented, noting that whether Bitcoin breaks back above or rejects this level will be “pivotal for the next few weeks or months ahead.”

Another critical level is the 50-week exponential moving average (EMA). Analyst ‘Stockmoney Lizards’ pointed out that this indicator “has been sort of a bull/bear indicator in the past years.” Expressing a continued belief that this is not a bear market, he stated, “For my hypothesis to be true, BTC should be able to break through the weekly EMA50.” At the time of analysis, this level stood at approximately $97,600, just $2,000 above Bitcoin’s price. A clean break above this resistance, especially on a weekly closing basis, would provide strong technical confirmation of a renewed bull trend.

The immediate hurdle is holding above $94,500. Analyst ‘Sykodelic’ called the move a “really nice move from Bitcoin,” following a clean break of that level with rising volume. He emphasized that a daily close above $94,500 could pave the way for “continuation to $100k.” Bitcoin’s daily close on Coinbase was recorded at $95,370, setting a positive stage for the next leg higher.

The bullish momentum was not confined to Bitcoin. The broader cryptocurrency market experienced a significant boost. Ethereum (ETH) gained a whopping 8% on the day to reach $3,350, its highest level since mid-December. Notably, Ether has outperformed Bitcoin year-to-date, boasting gains of more than 12% since New Year’s Day compared to Bitcoin’s 9%.

Major altcoins across the market rallied in tandem. Assets including XRP, Dogecoin (DOGE), Cardano (ADA), Monero (XMR), Chainlink (LINK), and Stellar (XLM) all posted solid gains. This broad-based strength indicates a return of risk-on sentiment across the crypto sector, with capital flowing beyond the market leader into other digital assets. The synchronized uptick suggests that the positive macro catalyst and Bitcoin’s breakout are providing a rising tide that is lifting most boats in the cryptocurrency ecosystem.