Why is Bitcoin’s price up today? Short squeeze, ETF flows & more

Bitcoin constructed on its earlier rally induced by softer inflation print and pushed larger to just about $98k in the course of the buying and selling session on the 14th of January. 

It closed at $97.9K, bringing its 2026 rally to 10%, however eased barely to $96.5K on the time of writing.  

Supply: BTC/USDT, TradingView 

Though Bitcoin [BTC] had cleared the $95K hurdle that saved it range-bound since November, the true check for a renewed bullish market construction shift can be reclaiming the 50-week Exponential Shifting Common (50-Week EMA). 

The 50-week EMA has served as assist throughout main corrections in bull market rallies, and dropping under it sometimes signifies an entry right into a bear part.

It was cracked when BTC fell under $100k in November, however the 2026 restoration may flip it into assist once more in case of a weekly shut above $97.6k. 

Which brings us to the essential questions: what triggered the newest rally, and can the important thing assist be reclaimed? 

Quick liquidations carry BTC larger

Bears had been pressured to the sidelines earlier within the week. Prior to now two days, quick liquidations surged to a two-month excessive of $125 million.

On the 14th of January, extra quick positions, about $58 million, had been worn out, suggesting that the mid-week rally was additionally pushed by a liquidity seize. 

Supply: Glassnode

The market sentiment additionally shifted to a constructive and “greed” stage for the primary time since October. For perspective, as of Monday, the Crypto Worry and Greed Index was on the “concern” stage.

Nevertheless, after the U.S. inflation print, BTC cleared $95k, and sentiment jumped to “impartial”  by mid-week.

Is threat urge for food again?

As of writing, the index climbed even larger to the “greed” stage. This meant threat urge for food was again.

Over the previous three days, U.S. Spot ETFs attracted over $1.7 billion in complete internet inflows, reinforcing the risk-on mode from traders. 

In truth, even the general worth momentum turned constructive, and a few had been betting on $98k and $100k earlier than the tip of January.

Nevertheless, as talked about earlier, solely a decisive reclaim of the 50-week EMA assist would point out a renewed bullish momentum. 

Supply: Checkonchain/X

And since there have been nonetheless leveraged quick positions parked at $99k, one other spherical of liquidity seize might carry BTC worth larger.

In any other case, stalling under the 50-week EMA ($97.65k) might open the potential of one other dip. 

Supply: CoinAnk

Last Ideas 

• BTC prolonged its mid-week rally to a excessive of $97.9k because of liquidity seize and renewed risk-appetite. 
• Nevertheless, for a confirmed and renewed bull market uptrend, the 50-week EMA should be decisively reclaimed as assist.