Bitcoin (BTC) traders are closely monitoring the cryptocurrency's 4-hour chart, where a notable reset into the 4H trend and previous resistance levels has sparked optimism. According to crypto analyst Skew Δ on Twitter, this development positions BTC in a favorable spot, but key confirmations are essential for sustained upward momentum. The analyst highlights the importance of acceptance above the weekly open and, crucially, above the $94,000 mark, which is deemed the area of most significance for future price action.

BTC's Technical Reset and Key Resistance Levels

In the latest analysis shared on January 8, 2026, Skew Δ points out that BTC has undergone a very nice reset on the 4-hour timeframe, aligning with the prevailing trend and testing previous resistance zones. This reset suggests a potential shift in market dynamics, where sellers may have exhausted their pressure, allowing buyers to step in. For traders, this could signal an entry point, but caution is advised without clear breakthroughs. The weekly open serves as an immediate hurdle, often acting as a psychological pivot for short-term trading strategies. More importantly, the $94,000 level emerges as a critical battleground—breaking and holding above it could invalidate bearish scenarios and open doors to higher targets, potentially testing all-time highs or even pushing toward $100,000 in a bullish continuation pattern.

From a trading perspective, this setup encourages a focus on support and resistance dynamics. If BTC achieves acceptance above $94,000, it might confirm a bullish trend reversal, supported by increasing trading volumes that often accompany such breakouts. Historical data shows similar resets in BTC's price history, like those observed in late 2024 bull runs, where resets into trend lines preceded significant rallies. Traders should watch for on-chain metrics, such as rising active addresses or whale accumulations, to validate this momentum. Without real-time data confirming these levels, market sentiment leans positive, but volatility remains a risk factor in cryptocurrency trading.

Trading Opportunities and Risk Management in BTC

For those eyeing trading opportunities, the $94,000 zone offers a high-reward setup for long positions if confirmed. Scalpers might target quick entries on 4H closes above the weekly open, aiming for 2-5% gains toward resistance. Swing traders could position for larger moves, using stop-losses below recent lows to manage downside risks. Market indicators like the Relative Strength Index (RSI) on the 4H chart could provide overbought or oversold signals, helping to time entries. Additionally, correlations with broader markets, such as stock indices influenced by crypto sentiment, suggest monitoring S&P 500 flows for institutional interest in BTC. If acceptance fails at $94,000, a retest of lower supports around $90,000 or even $85,000 could occur, presenting short-selling opportunities for bearish traders.

Overall, this BTC analysis underscores the importance of patience in trading. While the current reset looks promising, as noted by Skew Δ, confirmation above key levels will dictate the next phase. Investors should integrate this with broader crypto market trends, including Ethereum (ETH) performance and altcoin rotations, to gauge overall sentiment. With Bitcoin's dominance often driving the market, a successful breakout could fuel a sector-wide rally, benefiting diversified portfolios. As always, traders are advised to use leverage cautiously and stay updated on macroeconomic factors like interest rate decisions that impact risk assets.