New Year’s market kicks off strongly, and the crypto market’s bulls are full of confidence. Bitcoin has stabilized above the 91,000 support level and has been climbing steadily, even reaching the 93,000 mark during Monday’s trading session. Ethereum is right behind, consolidating around 3,100 and approaching 3,200 this morning. The short-term upward trend is clear, but we are now nearing a key resistance level, and a pullback must be guarded against. Continued upward movement will depend on whether capital and macro expectations can align.

With such a strong market, how did it come about? Essentially, it’s due to institutional activity. Over the past weekend, Bitcoin and Ethereum successfully broke out of the previous frustrating consolidation range — Bitcoin was previously trapped between 86,000 and 90,000, but now has completely broken free. Ethereum also broke out from its consolidation between 3,120 and 3,160. What’s behind this push? Capital. After New Year’s, markets in Europe and America reopened, and spot ETF funds started flowing back in. Weekly data shows Bitcoin ETF net inflows of $471 million, Ethereum ETF net inflows of $161 million, with BlackRock’s IBIT and ETHA funds playing leading roles. The scales of these two types of funds are both rising in tandem. The return of capital combined with liquidity recovery after the holidays explains why the market was able to break out.

From a technical perspective, a bullish structure has already formed, but it’s important to recognize — signs of overbought conditions are emerging. On the daily chart, Bitcoin’s continuous rise has accumulated a significant amount of profit-taking, and the biggest risk now is a sudden profit-taking correction.