Bitcoin faces a pivotal week marked by uncertainty surrounding the Federal Reserve's monetary policy, massive sell-offs in spot ETFs, and escalating geopolitical tensions.
After reaching levels that approached the glory of six figures, Bitcoin has experienced a pullback that currently places it in a constant struggle to maintain the support of $90.000.
The correction facing the cryptocurrency—which began in the fourth quarter of 2025—is not due to a single factor, but rather to a complex web of macroeconomic and technical events that have been converging in recent weeks. This drop in value has dragged down the sentiment of market participants, shifting from extreme optimism to defensive caution.
Currently, one of the most influential factors in market sentiment is the anticipation surrounding the upcoming Federal Reserve meeting and the political tensions surrounding its leadership. Adding to this is a steady outflow of capital from Bitcoin exchange-traded funds (ETFs), a phenomenon that increases selling pressure and hinders attempts to consolidate a lasting recovery above the nearest resistance levels. The market is closely watching every move, aware that Bitcoin's behavior in the coming days could set the tone for the first quarter of the year for the entire crypto ecosystem.
Trade Bitcoin today: create your accountBitcoin feels pressure from the Fed and the political conflict in Washington
Financial markets are focused on next Wednesday, when the US Federal Reserve will announce its decision on interest rates.
Although analysts anticipate the range will remain between 3,50% and 3,75%, the atmosphere leading up to this meeting is unusually tense. Public friction between President Trump's administration and Federal Reserve Chairman Jerome Powell has heightened uncertainty by raising questions about the central bank's autonomy. This potential for political pressure and legal action has created a cautious environment, which extends to risk assets.
Bitcoin, sensitive to any changes in global liquidity conditions, has reflected current investor nervousness with high volatility. In recent days, the crypto market has faced forced liquidations stemming from leveraged positions, a phenomenon that tends to intensify price declines when key support levels are breached.
Furthermore, these movements have been reinforced by a net outflow of $1.330 billion from spot Bitcoin ETFs during the week ending January 23, the largest withdrawal in nearly a year. This latest figure suggests that even institutional investors are pulling back amid growing doubts about economic stability and the threat of a potential US government shutdown.
Meanwhile, some companies in the sector are holding firm to their crypto accumulation strategies. Strategy, for example, recently added over 2.900 BTC to its reserves, reaffirming its long-term confidence. However, the increase in corporate demand for Bitcoin has not been enough to offset the widespread selling pressure, leaving BTC fluctuating in a scenario where monetary policy and macroeconomic tensions continue to dictate the market's pace.
Key levels for Bitcoin, according to experts
From a technical analysis perspective, Bitcoin's price structure has suffered significant deterioration after failing to sustain the momentum above $98.000 in the middle of the month.
Experts highlight that the weekly close below the $88.000 mark has returned control of the narrative to sellers in the short term. In this context, the $84.000 level has become a crucial defensive point to prevent a bearish extension that could take the cryptocurrency toward the $70.000 zone. Technical indicators, such as the Relative Strength Index (RSI) and moving averages, show signs of cooling, pointing to a necessary pause in the upward momentum accumulated over the past few months.
The situation in the crypto market also reflects a significant emotional component. The Fear & Greed Index is registering extreme fear, with a reading of 20 out of 100. This scenario typically appears during periods of intense selling pressure and is associated with phases where widespread pessimism limits rational decision-making. However, historical records show that these phases usually precede periods of stabilization and accumulation. Intraday volatility remains high and is partly due to the uncertainty stemming from renewed trade tensions and tariff measures that are impacting global risk appetite.
Cryptocurrency analyst Merlijn The Trader agrees that Bitcoin is behaving similarly to previous cycles. In a recent post, said The cryptocurrency was rejected again at the 0.382 Fibonacci retracement level, a pattern reminiscent of the 2021 and 2022 phases, when each peak was followed by a moderate rebound and then another correction. For him, the $78.000 represents the key line of defense for BitcoinAlthough the market structure maintains that technical familiarity, it underlines that the current macroeconomic context is different, with stronger institutional participation and a much more complex global financial environment.
Bitcoin seeks stability amid global economic uncertainty
Over the next few days, Bitcoin's performance could mark a key turning point in determining whether the market is establishing a solid support base or if the price correction will deepen. The most closely watched reference point will be the $90.000 zone, considered by several analysts to be the level that buyers must hold to maintain confidence and stem the downward pressure.
Even so, the direction the market takes will depend largely on the message the Federal Reserve issues this week regarding its monetary policy for the rest of the year.
The economic climate in the United States continues to be shaped by political uncertainty and trade tensions, intensified by President Trump's recent threats to impose new tariffs on South Korea. These announcements have added further uncertainty to an already sensitive environment, while industry experts agree that Bitcoin's performance remains closely tied to the global context rather than its technological fundamentals.
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