On Tuesday, the cryptocurrency market exhibited mixed behavior as a brief recovery was quickly met with renewed selling pressure, highlighting a prevailing trend of selling during rallies that experts believe may dominate the upcoming months.
Bitcoin (BTC) initially surged close to $92,500 but then sharply retreated to around $90,300 as sellers emerged near key technical resistance levels. At the time of reporting, bitcoin was hovering around its 50-day moving average—a critical benchmark closely monitored by traders.
Alex Kuptsikevich, chief market analyst at FxPro, warned that “a drop below $90,000 could trigger significant psychological impacts,” potentially driving prices down toward $87,000 or even lower if investor confidence deteriorates further.
Ether (ETH) followed a similar trajectory; it failed to gain momentum and slipped back toward the $3,120 mark. Meanwhile, XRP continued its downward trend for the seventh consecutive session approaching the $2.00 level and nearing its own 50-day moving average. Although XRP has gained roughly 10% year-to-date, Kuptsikevich noted that early January’s bullish momentum has waned as traders increasingly prefer selling on strength rather than pursuing upward moves aggressively.
This pattern reflects a wider repositioning across crypto markets overall.
The trading activity in December remained mostly flat due to reduced liquidity over holiday periods. The initial rally seen in January has struggled to maintain sustained follow-through so far.
Supporting this perspective are derivatives metrics: open interest in bitcoin futures recently fell to its lowest point since late 2022 according to CryptoQuant data. Historically speaking, such drops often precede consolidation phases and sometimes signal forthcoming bullish reversals after leverage adjustments occur.
There are also indications that forced liquidation pressures might be easing up. Analysts from JPMorgan highlighted stabilization trends in ETF outflows alongside improved positioning within perpetual futures and CME markets—signs suggesting that the harshest phase of sell-offs could be behind us.
However, one segment within cryptocurrencies stood out amid these conditions.
Monero experienced an impressive rally of approximately 44% over eight days—reaching record highs above $600 on Monday and trading near $640 by Tuesday. Santiment’s data revealed this surge coincided with heightened interest in privacy-centric assets where Monero clearly leads this niche sector.
Santiment commented: “The privacy sector has been refreshing,” while cautioning investors about potential pullbacks following spikes driven by social media hype.”
📈 Monero's +44% surge over the past 8 days led to a $608 all-time high. If you are looking for an entry point, consider doing so after social hype and FOMO wears off slightly. The privacy sector has been a breath of fresh air these past 3 months, with $XMR now in the forefront… pic.twitter.com/fsmS0u9dlr
— Santiment (@santimentfeed) January 12,&;2026
The broader macroeconomic environment continues playing an influential role. </br>Global equity markets extended their rallies with Asian stocks reaching new highs as investors diversified beyond U.S.-centric holdings. </br>The MSCI All Country World Index climbed higher while European equity futures pointed upwards despite softer U.S stock futures following S&p&lt;/span&gt500’s record close.
</br>Treasury yields edged up modestly—the U.S ten-year yield rose near four-point-one-nine percent.—Meanwhile gold & silver recovered earlier losses thanks partly due Citigroup’s optimistic outlook while Brent crude oil hit highest levels since November amid President Donald Trump’s remarks regarding possible tariffs linked with Iran.
</br>Some analysts interpret these conditions as quietly favorable for cryptocurrencies medium-term prospects.
</br>Lacie Zhang from Bitget Wallet remarked via email how stabilizing prices among bitcoin & ether indicate rebuilding conviction instead speculative chasing bursts:
</br>“Concerns about central bank autonomy combined with weaker dollar expectations plus anticipated accommodative policies tend favor scarce non-sovereign assets.” Zhang predicts Bitcoin could approach one hundred twenty thousand dollars within coming months if sentiment improves—with longer-term gains relying more on consistent institutional demand rather than short-lived hype.
</br>For now market participants seem inclined towards profit-taking during rallies selectively rotating positions while awaiting clearer directional cues.Monero’s breakout exemplifies pockets where strong conviction persists though overall sentiment leans towards patience instead panic or exuberance.