Bitcoin price continues to compress below key resistance as macro risk re-enters the equation. BTC price trades within a tightening range after failing to reclaim higher ground, while external pressure builds around U.S. monetary credibility. The Federal Reserve Chair Jerome Powell investigation by the Department of Justice creates institutional uncertainty at an opportune time when risk assets are sensitive.
DOJ Probe Adds Friction to Bitcoin Price Structure
The DOJ investigation into Jerome Powell does not directly target Bitcoin price, however it alters the macro framework shaping BTC price behavior. Markets are dependent on confidence on monetary autonomy, which grounds capital allocation choices.
Once legal pressure is introduced into that system, investors will re-evaluate risk exposure in currencies, bonds, and other stores of value. This change has already manifested itself in dollar weakness and strength of hard assets, which is an indication of increasing sensitivity to policy credibility.
Bitcoin is more likely to take in such macro tension in the form of structure than impulse. As a result, BTC price has remained technically constrained instead of reacting emotionally. That restraint is an indication of conditional demand and not risk aversion.
As long as confidence in policy autonomy is eroded, Bitcoin is becoming more of a macro hedge. This does not compel an immediate upside, but increases the likelihood of price consolidation healing higher as opposed to lower.
The Bitcoin Outlook is defined by the 92K Zone
BTC price is currently trading under the 92K zone, which still characterizes short-term control. The asset has been ranging between $90,500 and $92,000 after failing to gain acceptance above 92K, implying that sellers continue to aggressively defend 92K.
Nonetheless, buyers have still defended the wider 88K-88.5K demand zone and avoided further decline as well as maintaining structural balance. This dynamic shapes the long-term BTC price outlook.
The price behavior is compressed and not rejected. Every pullback has been above previous lows, and this continues to put pressure under resistance. This narrow range is positioning and not distribution.
A decisive switch of 92K to support would change the market control and make the expectations shift significantly. Until that occurs, BTC price remains structurally constructive but unresolved, with direction hinging on how price behaves around this upper boundary.
BTC/USDT Daily Chart (Source: X)Cup-and-Handle Structure Keeps BTC Price Biased Higher
The recent BTC price movement indicates a cup-and-handle formation that started to form in mid-December. The rounded bottom created by constant demand and the continued handle depicts consolidation as opposed to distribution.
Price still respects the ascending support, and it maintains the higher lows and indicates that the buyers are still active during the pullbacks. BTC has since regained the 90K level but was rejected when trying to move past 92K. At the time of press Bitcoin market value trades around $91,400 just below the $92,000 threshold.
In spite of such rejection, structure is constructive. The failure to break lower after attempting to break at $92K is indicative of absorption of supply and not exhaustion. If BTC price flips the 92K level into support, the pattern completes, opening a direct path toward the 95K neckline.
This framework is in line with the broader market expectations, with Polymarket participants giving Bitcoin a 57% chance of hitting $95K in January, and the chances of a move to $100K being significantly lower.
BTC/USD 4-Hour Chart (Source: TradingView)To sum up, Bitcoin price continues to compress beneath resistance while policy uncertainty rises following the DOJ probe into the Fed. Rather than triggering volatility, this backdrop has reinforced structural discipline, with BTC price holding ascending support.
If price recovers $92K, the macro hedging demand and technical structure are congruent with continuation. A breakdown in maintaining higher lows would be a pointer that institutional uncertainty cannot sustain additional upside.
Source: https://coingape.com/markets/bitcoin-price-prediction-amid-doj-investigation-into-fed-chair-powell/
