January 4, 2026
Finance

Cryptocurrency Markets Rally Amid U.S. Military Action in Venezuela, Analysts Eye Bitcoin Breakout

Bitcoin and major altcoins gain momentum as geopolitical developments impact trading dynamics, signaling potential milestones ahead

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Summary

Cryptocurrency prices surged markedly following U.S. military intervention in Venezuela that resulted in the removal of President Nicolás Maduro. Bitcoin approached $93,000 amid a wave of short liquidations, while Ethereum shattered key resistance levels. The broader crypto market capitalization rose to $3.13 trillion, accompanied by stable stock futures and rising oil prices. Leading analysts identify technical patterns suggesting continued upward potential for Bitcoin and Ethereum.

Key Points

Bitcoin approached $93,000 amid increased trading volume and significant short position liquidations following U.S. military action in Venezuela.
Ethereum broke a critical resistance at $3,100, reaching over $3,200 before stabilizing, indicating potential for further upward moves.
The global cryptocurrency market capitalization rose to $3.13 trillion, with smaller-cap coins showing strong gains alongside stable stock futures and rising oil prices.
Analysts identified technical signals on Bitcoin and Ethereum charts suggesting possible continued rallies, with Bitcoin potentially targeting $100,000 after a brief pullback.

Late Sunday evening witnessed substantial upward movement across the cryptocurrency landscape as geopolitical events unfolded in Venezuela. The recent U.S. operations, culminating in the capture of President Nicolás Maduro and his wife, Cilia Flores, have coincided with pronounced gains in the leading digital assets, setting off a wave of market activity emphasizing bullish momentum.

The flagship digital currency, Bitcoin (BTC), observed a strong rally, nearing the $93,000 threshold by 8:25 p.m. Eastern Time. This price appreciation was accompanied by a notable surge in trading volume, increasing by approximately 30%, highlighting elevated buying interest and intensified market participation during this period. The strength of this upward spike triggered liquidation of bearish positions, with over $115 million removed from short positions within the preceding hour, according to data from Coinglass, contributing to a total market-wide liquidation exceeding $117 million in that timeframe.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, similarly exhibited significant gains. The asset overcame a critical resistance level at $3,100, reaching an intraday high near $3,210 before settling around $3,181.92. This breakout is interpreted by traders as a bullish indicator with the potential to spur further price appreciation. Concurrently, other prominent tokens such as XRP, Solana (SOL), and Dogecoin (DOGE) demonstrated upward movements of 4.52%, 1.43%, and 3.85% respectively, pointing to broad-based strength across top cryptocurrencies.

Beyond the altcoin leaders, smaller market cap cryptocurrencies showed even more pronounced percentage gains over the last 24 hours. Onyxcoin (XCN) surged by 32.69% to $0.006167, Brett (BRETT) climbed 22.28% to $0.02065, and Bonk (BONK) jumped an impressive 19.95% reaching $0.00001180. These sharp increases contribute to the overall expansion of the global cryptocurrency market capitalization, which ascended by approximately 0.68% to reach $3.13 trillion.

Despite the heightened volatility in digital assets, U.S. stock futures evidenced relative stability in the evening session. S&P 500 futures posted a modest gain of 0.05%, while Nasdaq 100 futures advanced 0.24%, reflecting cautious optimism within equity markets. In contrast, Dow Jones Industrial Average futures experienced a slight decline, shedding 21 points or 0.04% as of 7:45 p.m. Eastern Daylight Time. These movements occur amid the unfolding geopolitical situation in Venezuela, underscoring the interconnected nature of global risk assets to geopolitical developments.

In the commodity markets, crude oil prices showed an upward trajectory. Brent crude oil climbed 0.76% to $61.24 per barrel while West Texas Intermediate crude increased 0.61% to $57.66 per barrel. These gains reflect the market’s response to the change in Venezuela's leadership and expectations of renewed investment and production activity in its oil sector, as highlighted by former U.S. President Donald Trump’s announcement about impending substantial investments by American oil firms.

Market participants and technical analysts have been interpreting the ongoing cryptocurrency price action with keen interest. Notably, trader and analyst Ali Martinez identified a symmetrical triangle formation on Ethereum's price chart. This technical pattern suggests a significant breakout is likely, potentially producing a price movement magnitude near 30% in either direction, signifying heightened volatility and potential trend direction change.

Similarly, noted crypto commentator Michaël van de Poppe characterized Bitcoin's current phase as a battle against its final significant resistance before a prospective rally to $100,000. He projected a minor pullback might occur to close the Chicago Mercantile Exchange gap in the coming trading session. Subsequent to this, Van de Poppe anticipates a continuation of the bullish trend driving Bitcoin toward the $100,000 benchmark.

This wave of optimism is juxtaposed against prevailing cautionary market sentiment, with the Crypto Fear and Greed Index signaling that 'Fear' still dominates among traders and investors. This index serves as an important gauge of market psychology, suggesting that despite recent gains, participants remain wary amid fluctuating geopolitical and economic factors.

In summary, the confluence of significant geopolitical developments in Venezuela and dynamic technical signals in cryptocurrency markets underpins a period of elevated activity and investment interest. Close monitoring of price movements, technical patterns, and broader economic indicators remains essential for investors navigating this complex environment.

Risks
  • Prevailing market sentiment remains in 'Fear' territory, indicating caution among investors despite recent gains.
  • The symmetrical triangle pattern on Ethereum, while indicating a potential breakout, also suggests volatility with possible moves in either direction.
  • Short liquidations triggered intensified price moves that may lead to corrective phases or pullbacks.
  • Geopolitical events and resulting market reactions introduce uncertainties affecting asset price stability and investor confidence.
Disclosure
Education only / not financial advice
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Ticker Sentiment
BTC - positive ETH - positive XRP - positive SOL - positive DOGE - positive
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