Bitcoin price surged toward the $94,000 resistance level on January 5, 2026, reaching an intraday high of $93,408. This rally occurred as markets reacted to escalating geopolitical uncertainty following US airstrikes in Caracas and the reported capture of Venezuelan President Nicolás Maduro. Historically, such periods of instability have pushed investors toward perceived safe-haven assets, with Bitcoin increasingly viewed as "digital gold" during sovereign crises.
The overall cryptocurrency market cap surged above $3.23 trillion for the first time since mid-December. Market sentiment improved significantly, with the Crypto Fear and Greed Index entering neutral territory at 42 after spending much of December in extreme fear. Bitcoin's January surge also coincides with the seasonal "January Effect," where investors re-enter markets after tax-related selling in late December.
Adding significant momentum to the rally is intense speculation surrounding Venezuela's alleged 600,000 BTC shadow reserve, worth approximately $60 billion. Market observers suggest that if the US administration were to seize these assets, a substantial portion of Bitcoin supply would be removed from circulation, potentially creating a supply shock at a time when exchange reserves are already near record lows. Analyst Carlitosway highlighted on social media that this stash is "twice the U.S. government’s pre-raid stash" and "twelve times the German liquidation that rattled the market."
Technical factors also contributed to the upward move. Bitcoin open interest climbed steadily, rising by 4% on Monday to over $138 billion. Short positions took a significant hit, with liquidations crossing $210 million, further fueling price upside. There are also signs of returning institutional demand, with US spot Bitcoin ETFs opening 2026 with strong inflows.
The $94,000 level represents a critical resistance area. A clean breakout above this zone could trigger fresh momentum toward new all-time highs. However, analysts note two unfilled CME futures gaps that formed during recent weekend price action, which often act as price magnets. According to the 24-hour liquidation heatmap from CoinGlass, Bitcoin faces a dense cluster of liquidation levels just above $94,000 extending through the $96,000-$97,000 range. These zones represent heavily leveraged short positions that could get wiped out if Bitcoin pushes higher, potentially creating a liquidation cascade on the upside.
Meanwhile, the altcoin market showed mixed performance. The combined market cap of all altcoins rose 3.5% to $1.48 trillion before facing a sharp drop in later trading hours, settling at $1.39 trillion. Ethereum (ETH) rose from $3,100 to $3,200 before stabilizing around $3,162 with gains of just 1%. Other large-cap altcoins like XRP, BNB, and Cardano saw gains between 1-3%.
The standout performers were AI-focused cryptocurrencies Render (RENDER) and Virtuals Protocol (VIRTUAL), which clocked gains between 20-25% in the daily session. This surge was largely attributed to bullish revenue forecasts from AI-chip making giant Nvidia for fiscal 2026 Q4. Stacks (STX) also gained 14.6% as part of the new year rebound, with growing demand among derivative traders evidenced by a spike in futures Open Interest.
At press time, Bitcoin was trading just above $93,500 with gains of nearly 3%, while the market awaited a decisive move above the critical $94,000 resistance level.
