How a 10 BTC Transfer Started a Financial Revolution 17 Years Ago

Bitcoin traded near $90,000 in early January 2026, failing to break past the $95,000 level amid cautious investor sentiment and anticipation of key macroeconomic and policy developments. The cryptocurrency had briefly climbed above $94,800 earlier in the week but remained under pressure from bearish indicators such as the RSI according to analysis.

Analysts noted that a critical support level near $90,000 had held so far, with further price gains dependent on a breakout of the $94,253 resistance. The failure to sustain momentum above this level raised concerns of a possible correction if the RSI dipped below neutral territory.

Investors are closely watching developments in Washington, including U.S. Federal Reserve policy decisions and Trump’s tariff strategy, for potential market-moving catalysts. The cryptocurrency market, often sensitive to macroeconomic shifts, is in a holding pattern until these events unfold.

Why Did This Happen?

Bitcoin’s inability to break above $95,000 reflects ongoing uncertainty in the broader market. Strong U.S. jobs data had briefly pushed prices higher, with the nonfarm payrolls report showing 50,000 new jobs and an unemployment rate of 4.4%. This led to a short-lived rally above $90,000.

However, the upward move lacked the momentum needed to break past critical resistance. The RSI indicator, a key gauge of market strength, remained a focal point for analysts predicting a possible correction if it dipped below the neutral level.

How Did Markets Respond?

The broader cryptocurrency market mirrored Bitcoin’s mixed performance. While Bitcoin remained within a tight trading range, altcoins experienced mixed movements, with some gaining ground as investors rotated capital in search of higher returns. Stablecoins, in contrast, saw increased demand as a hedge against volatility.

Bitcoin dominance, the ratio of Bitcoin’s market capitalization to the total crypto market, remained relatively stable. A high dominance level typically indicates investor preference for the largest cryptocurrency, often before or during a bull market. A drop in dominance, however, could signal a shift toward altcoins.

Stablecoins continue to serve as a crucial on-ramp for investors entering and exiting the crypto space, providing a more predictable asset class compared to the highly volatile nature of Bitcoin and altcoins.

What Are Analysts Watching Next?

Bitcoin’s next move will depend largely on macroeconomic developments. The U.S. Federal Reserve’s upcoming decisions will play a key role in shaping investor sentiment. A rate hold in early 2026 could support Bitcoin’s price action, especially if it signals a pause in tightening monetary policy.

Meanwhile, Trump’s trade policies remain a wildcard. The administration’s ongoing tariff policy and recent trade truce with China have sparked debate on their long-term impact on global markets and investor confidence. Peter Navarro, Trump’s senior trade adviser, defended the administration’s approach, emphasizing the need for strong tariffs to counter Chinese trade practices.

The Supreme Court’s upcoming ruling on the legal basis of Trump’s use of emergency powers to levy tariffs could also have financial implications. A loss for the administration could lead to a multibillion-dollar refund of collected tariffs and potentially weaken the policy’s effectiveness.

Investors and analysts are also watching for any follow-up on the administration’s recent trade agreements with Mexico, which saw the imposition of high tariffs on Chinese imports. The broader trend is toward reinforcing trade barriers to protect domestic industries, which could affect global supply chains and commodity prices.

Market participants are waiting for a clear catalyst to break the current impasse. Until then, Bitcoin is likely to remain in a consolidation phase, with key support and resistance levels determining the direction of the next move.