Bitcoin built on its earlier rally driven by softer inflationary pressures, rising to nearly $98,000 during the January 14 trading session.
The stock closed at $97.9K, bringing the 2026 rally to 10%, but fell slightly to $96.5K at the time of writing.
Source: BTC/USDT, TradingView
Although Bitcoin [BTC] Once the $95,000 hurdle that has held the price high since November had been overcome, the real test for a renewed bullish market structure shift would be regaining the 50-week exponential moving average (50-week EMA).
The 50-week EMA has served as support during major corrections in bull market rallies, and a decline below it typically signals the start of a bear phase.
It was cracked when BTC fell below $100,000 in November, but the 2026 recovery could turn it back into support in the event of a weekly close above $97.6,000.
Which brings us to the crucial questions: what prompted the latest rally, and will key support be recovered?
Short liquidations lift BTC
Bears were forced to the sidelines earlier this week. Over the past two days, short liquidations have risen to a two-month high of $125 million.
On January 14, even more short positions, around $58 million, were wiped out, indicating that the mid-week rally was also driven by a liquidity grab.
Source: Glassnode
Market sentiment also shifted to a positive and ‘greedy’ level for the first time since October. For perspective, from Monday the Crypto Fear and Greed Index was at the level of ‘fear’.
However, after the US inflation data, BTC managed to clear $95,000, and sentiment jumped to “neutral” by mid-week.
Is the risk appetite back?
At the time of writing, the index climbed even further to the ‘greed’ level. This meant that risk appetite was back.
Over the past three days, US Spot ETFs have attracted a net total of more than $1.7 billion inflowthereby strengthening investors’ risk appetite.
In fact, even the overall price momentum turned positive, and some were bet at $98k and $100k before the end of January.
However, as mentioned earlier, only a decisive retracement of the 50-week EMA support would indicate renewed bullish momentum.
Source: Checkonchain/X
And since there were still short leveraged positions parked at $99,000, another round of liquidity grabs could send the BTC price soaring.
Otherwise, a stop below the 50-week EMA ($97.65k) could open the possibility of another dip.
Source: CoinAnk
Final thoughts
- BTC extended its mid-week rally to a high of $97.9k thanks to the liquidity grab and renewed risk appetite.
- However, for a confirmed and renewed uptrend in the bull market, the 50-week EMA must be resolutely reclaimed as support.