Bitcoin News Today: BTC Holds Near $89K as Volatility Builds Under Key Resistance

Bitcoin traded near $89,865 on January 2, 2026, posting a daily gain of about 1.16% while remaining far below prior highs and key resistance levels. The daily chart of BTC/USDT, shown in KuCoin and tweeted by CryptoCeasar on X, depicted the price opening around $88,832 and making a daily high of nearly $89,924. While the bounce occurred, the price remained confined within a wider correctional structure, indicating the market's technical weakness continuing into the new year.

The chart marked a break of structure earlier in the cycle near $120,000 to $124,000, now labeled as a weak high. That zone capped the prior bullish impulse and preceded a sharp decline that pushed Bitcoin below several former supports. As a result, price momentum shifted lower through October and accelerated into November.

A broad red resistance band between $107,000 and $110,000 remained intact after multiple failed reclaim attempts. That zone previously acted as demand before flipping into supply, reinforcing its role as a major overhead barrier. Below it, Bitcoin continued forming lower highs and lower lows, maintaining a bearish market structure.

Rising Channel Forms After Sharp November Decline

The selling pressure around the $80,687 area, which the price chart indicated as a significant reaction low, began to ease. Bitcoin, after considering that, formed a rising channel, characterized by two ascending sloping trendlines. The configuration pointed to a corrective recovery instead of a confirmed trend reversal.

Within the channel, the chart showed two circled liquidity reactions, in which the price briefly dipped below short-term support. Each dip quickly reversed, pointing to stop-loss runs and short-term liquidity grabs. These moves did not establish sustained demand strength.

Price repeatedly stalled near the channel’s upper boundary, where sellers reappeared. A dashed projection line suggested a possible push toward the top of the channel. No breakout confirmation appeared on the chart at the time.

An equal highs marker appeared near the $90,000 level. That area indicated clustered liquidity, with the price not yet cleared. As long as that liquidity remained untouched, range-bound trading persisted.

Also Read: Bitcoin Price Today Near $88,786 as Market Awaits Breakout

Volatility Compression Adds Another Risk Layer

CoinDesk's separate reporting indicated a Bollinger Bands squeeze, an indicator of lower volatility. Price increases often follow such situations, as volatility tends to follow a low-volatility period. 

The history of the market shows that these times were very much the same, with significant, rapid shifts in one direction or the other. In late July, Bitcoin moved sideways within a $115,000 to $120,000 range during a similar squeeze. 

This period was then followed by three months of expansion, with wide fluctuations between $100,000 and $126,000 per month. A little earlier, the mid-April squeeze between $94,000 and $98,000 led to a fall to $80,000 by the end of the month. 

The Bollinger Bands have been indicating volatility expansions since 2018. As a result, the latest squeeze tells traders to be alert and cautious. At the time of writing, Bitcoin was at $88,600, up 1% from the previous day, raising the question: which way will the next volatility break go?

Conclusion

Bitcoin trades near $89,000 within a rising corrective channel after a sharp decline from weak highs. Key resistance remains overhead while a Bollinger Bands squeeze signals tightening volatility. The market structure stays fragile, prompting traders to closely monitor support, resistance, and the next directional breakout.