After a strong start to the year, Bitcoin's price cooled on Monday, January 12, 2026, trading directionless between the mid-$80,000s and low-$90,000s following a pullback from late-2025 peaks. The token was last seen trading around $90,500, having failed to hold the $91,500 level and entering short-term negative territory below $92,000 and $91,200. Technical analysis from TradingView noted the price established a low at $89,225 and is attempting a new upward move, having surpassed $90,500 and the 23.6% Fibonacci retracement level from the recent drop from a $93,770 peak.
The market's directionlessness persists despite a significant political development involving Federal Reserve Chair Jerome Powell. Late Sunday, Bitcoin briefly soared beyond $92,000 after Powell publicly addressed subpoenas from the Department of Justice (DOJ) regarding a criminal investigation into his testimony about Fed building renovations. Powell characterized the probe as political interference, stating in a video, "The possibility for criminal charges stems from the Fed making decisions on rates based on our best judgment of what serves the public, rather than appealing to the President's preferences." US President Donald Trump subsequently denied knowledge of the grand jury investigation.
This event has renewed attention on Bitcoin as a non-sovereign risk asset, potentially advantageous amid fears of politically influenced monetary policy. The Fed's upcoming meeting on January 28, 2026, has heightened market sensitivity, with expectations growing for a pause in rate cuts. Analysts suggest that while the situation could increase volatility, a significant stock market adjustment might drive interest toward Bitcoin's government-independent characteristics.
Technical Outlook and Historical Parallels
Current technical readings show Bitcoin consolidating in a range between roughly $84,000 and $94,000, a compression pattern reminiscent of its behavior from March to May 2025. During that period, Bitcoin traded range-bound between $76,000 and $86,000 before breaking out and embarking on a multi-month rally to an all-time high above $126,000—a gain of approximately 46% from the breakout point. Analysts note that the $94,000 level is now the critical resistance zone; a confirmed breakout could set the stage for a similar upward trajectory, with upside targets potentially exceeding $126,000.
However, shorter-term technical signals are mixed. TradingView's overview based on moving averages, oscillators, and pivots pointed to a sell stance for the week ahead. Separately, InvestTech's algorithmic analysis indicated a "weak negative" outlook, noting Bitcoin is approaching resistance at $93,400 which may cause a negative reaction. The firm added that a break above $93,400 would be a positive signal, with the RSI curve showing a rising trend. InvestTech's overall assessment for the short term is technically neutral, with a recommendation to hold over a one-to-six-week horizon.
