Bitcoin moved above the $97,000 level, extending a recovery that brought temporary relief to a market weighed down by weeks of uncertainty. While the move has restored optimism among investors, a large portion of analysts remain cautious, saying the rally could be inflation-driven within a broader bearish setup in 2026.
Price strength alone, however, does not fully explain current movements. According to CryptoQuant analyst, Bitcoin showed remarkable resilience after firmly breaking the resistance area of $94,200 and quickly reached the $97,500 area, with on-chain data providing an important context behind the development.
Related Reading
One of the key indicators supporting this initiative is Value Days Destroyed (VDD), a metric that sheds light on long-term management behavior. VDD measures how long coins sat idle before being spent, measured by transaction size. In simple terms, it helps to distinguish whether the price movement is driven by experienced owners distributing old coins or new coins changing hands.
As of January 2026, VDD is hovering around 0.53, a historically low reading. This means that the coins currently circulating in the network are still small, while the old holdings are still very much behind. Such behavior suggests that long-term holders are not rushing to sell for strength, providing structural support for the latest rally—even as the broader market debates whether this rally represents renewed strength or just a temporary withdrawal.
Long-Term Managers Strengthen the Quality of Bitcoin Breach
A report by Carmelo Alemán, Certified On-Chain Analyst at CryptoQuant, highlights the key reversal behind Bitcoin’s recent move above key resistance levels. Despite the sharp price increase, long-term owners remain inactive. In practical terms, this means that investors who have held Bitcoin for multiple cycles are not using the current strength as an opportunity to exit positions. Their self-control greatly improves the quality of the meeting.
Historically, this behavior has mattered. When Bitcoin improves while Value Days Destroyed (VDD) remains low, it indicates that old coins are not entering circulation. Demand is met mainly by limited supply, which allows the price to rise without causing systematic selling pressure from more experienced market participants. These stages are often accompanied by periods of healthy expansion rather than temporary speculative gaps.
The current output fits that historical pattern. Bitcoin’s move against resistance has not been accompanied by an increase in long-lived coins in use. Instead, long-term currencies appear comfortable holding higher rates, suggesting confidence in the broader market structure rather than a rush to lock in gains.
This background support is always conditional. As long as VDD is pressed, the assembly maintains a stable ground. However, a further increase in the index will change the narrative, indicating that long-term holders are beginning to distribute and may mark a shift to more severe selling pressure.
Related Reading
Price Tests Key Resistance After December Retracement
Bitcoin price is trying to stabilize after a sharp decline from December lows, with the chart showing BTC regaining the $96,000–$97,000 area. This level coincides with the convergence of technical factors, making it an important area of temporal direction. The recent recovery followed a strong sell-off from November’s highs. There the price broke below the 50-day and 100-day moving averages and briefly touched the $80,000 lows.
From a structural perspective, BTC is now printing higher lows on the daily time frame, indicating a short-term trend reversal. The price also found its 50-day moving average, which often acts as a resistance to volatility during a downturn. A hold above this level would be constructive, as it suggests that buyers are regaining control after weeks of widespread volatility.
Related Reading
However, resistance overhead is still important. The 100-day and 200-day moving averages, currently clustered between $100,000 and $108,000, represent a critical supply point where the previous breakout occurred. A failure to push higher could lead to renewed consolidation or a pullback to the $92,000–$94,000 support range.
The volume increased during the repetition, indicating a real participation rather than a low fluid bounce. However, the broader trend remains unclear. For bullish momentum, Bitcoin needs to be accepted above $97,000 and a clear attempt towards the psychological level of $100,000. Otherwise, the move risks becoming a technical repetition within a major correction phase.
Featured image from ChatGPT, chart from TradingView.com
