Bitcoin Price Prediction for Jan 23: Is a Drop to $91K on the Horizon?

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After the Bitcoin (BTC) price closed Wednesday in a black Marubozu candlestick, it is evident that the bearish outlook is gradually gaining ground. The flagship coin was rejected at a crucial resistance range between $107k and $109k, thus forming a short-term reversal pattern. 

Bitcoin Price Today

In the four-hour time frame, Bitcoin price has been forming a possible head and shoulders (H&S) pattern, coupled with a falling divergence of the Relative Strength Index (RSI). In case of further short-term bearish sentiment, Bitcoin price will find a solid support range between $101k and $99.5k.

In the daily time frame, a potential macro reversal pattern, characterized by a double top and bearish divergence, has been forming since early December 2024. In this regard, Bitcoin price could drop in the lower border of a horizontal channel around $91k.

Conflicting Market Outlook

Following the glamorous inauguration of pro-crypto US President Donald Trump, the cryptocurrency’s bullish outlook has significantly cooled down, possibly due to the sell-the-news narrative. Although long-term investors – led by MicroStrategy, and BlackRock – have continued to relentlessly accumulate more Bitcoins, short-term traders have continued to shift focus to the highly anticipated altcoin season.

Meanwhile, tomorrow’s BoJ’s policy rate announcement among other high-impact news will likely guide traders on next week’s Federal Reserve’s interest rate policy change. The unpredictability of the Trump administration has increased the market complexity amid the recent higher-than-expected inflation data.