The cryptocurrency market is showing robust momentum as it pushes toward new highs, with Bitcoin eyeing the $100,000 milestone once again. According to a recent market overview, the total crypto market capitalization has surged 3.86% to reach $3.23 trillion, driven primarily by strong performances from major assets like BTC and ETH. Bitcoin has climbed 5.15% in the latest session, while Ethereum has gained an impressive 6.25%, reflecting heightened investor confidence and risk appetite across the board. This upward grind comes amid normalized market conditions following a spike in short liquidations exceeding $500 million on January 13, 2026, which has since stabilized, allowing for a more balanced trading environment.

Analyzing BTC and ETH Price Movements Toward $100K

In terms of trading opportunities, Bitcoin's push toward $100,000 presents key levels for traders to watch. The asset has been grinding higher, building on its recent gains, with support levels firmly established around $90,000 based on historical price action from late 2025. Resistance is anticipated near $98,000, where previous all-time highs were tested. On-chain metrics indicate increasing accumulation by large holders, with trading volumes spiking 15-20% in the past 24 hours across major pairs like BTC/USDT on exchanges. Ethereum, meanwhile, is benefiting from correlated strength, with its price action suggesting potential for further upside if it breaks above $4,000. Funding rates have risen in line with this risk-on sentiment but remain at healthy levels, avoiding overheating that could trigger sharp corrections. Traders should monitor perpetual futures contracts, where positive funding rates signal bullish bias without excessive leverage risks.

Impact of Liquidations and Funding Rates on Market Sentiment

The recent liquidation event on January 13, 2026, where shorts were wiped out to the tune of over $500 million, underscores the perils of betting against the trend in a bull market. This cascade normalized quickly, preventing broader volatility and allowing longs to dominate. From a trading perspective, this has led to elevated but sustainable funding rates, which are crucial indicators for perpetual swap traders. For instance, BTC funding rates on major platforms hovered around 0.01% to 0.05% per eight hours as of January 16, 2026, indicating optimism without the froth seen in previous bubbles. Institutional flows appear supportive, with on-chain data showing net inflows into BTC and ETH wallets, potentially correlating with traditional market rallies. South Korea's market dynamics, often a bellwether for Asian sentiment, could further influence global trading volumes, especially in ETH pairs given its DeFi dominance.

Looking at broader implications, this market overview highlights opportunities for swing traders targeting BTC's ascent to $100K. Key strategies include scaling into positions on dips toward support levels, with stop-losses below $85,000 to manage downside risks. Volume analysis reveals that BTC/USDT pairs saw over $50 billion in 24-hour trading volume as of the latest data, up significantly from prior weeks, signaling strong liquidity. For ETH, resistance at $4,200 could be a profit-taking zone if breached. Market indicators like the RSI for BTC are approaching 70, suggesting overbought conditions but not yet extreme, allowing room for further gains. Correlations with stock markets remain positive, with crypto benefiting from tech sector strength, potentially opening cross-market trades. Overall, the healthy funding environment and liquidation normalization point to sustained upside, though traders should watch for any geopolitical shifts, such as developments in South Korea, that could sway sentiment. This setup favors long positions in a risk-managed portfolio, emphasizing the importance of real-time monitoring for optimal entries and exits.

In summary, the crypto market's 3.86% cap increase to $3.23T, coupled with BTC's 5.15% and ETH's 6.25% gains, paints a picture of resilient bullishness. As funding rates rise moderately and liquidations stabilize, the path to $100K for Bitcoin appears clear, offering traders actionable insights into price levels, volumes, and on-chain trends for informed decision-making.