Bitcoin Price Plummets as DOJ Investigates Fed Chair Powell; What’s Next?

Bitcoin price faces pressure as DOJ investigates Fed Chair Powell, with $92K resistance and potential for a $95K breakout.

Bitcoin’s price has been under pressure as the Department of Justice (DOJ) investigates U.S. Federal Reserve Chair Jerome Powell.

While the investigation doesn’t directly target Bitcoin, it has created uncertainty in the broader market.

As a result, Bitcoin’s price has remained relatively steady, though it faces challenges due to the changing macroeconomic environment.

Analysts are now focusing on the $92,000 level, which is seen as a key point of resistance.

DOJ Investigation Adds Uncertainty to Market Sentiment

The DOJ investigation into Jerome Powell has raised concerns about the U.S. Federal Reserve’s independence.

This has created broader uncertainty in the financial markets, as investors worry about potential shifts in monetary policy.

Although the investigation doesn’t directly involve Bitcoin, it has contributed to a less predictable economic environment.

As policy autonomy becomes more uncertain, investors may reconsider their risk exposure.

This has led to dollar weakness, with Bitcoin benefiting from its position as a hard asset.

Bitcoin’s price action shows that investors are seeking stability in uncertain times, though the pressure remains as legal developments unfold.

Despite these challenges, Bitcoin has not experienced a sharp decline. Instead, it has shown signs of absorbing market tension rather than reacting impulsively.

This indicates that Bitcoin is becoming more of a macro hedge, potentially attracting investors looking for safer assets amid economic instability.

Bitcoin Price Range Narrowed by 92K Resistance Zone

Bitcoin has been unable to break above the $92,000 resistance level, which remains a critical area for the market.

The price has fluctuated between $90,500 and $92,000, with sellers continuing to defend this key zone.

Despite these challenges, Bitcoin has managed to hold within a relatively narrow range, signaling that the market is waiting for a breakout.

The $88,000 to $88,500 zone has acted as support, preventing further declines. This has kept Bitcoin from falling to lower levels, allowing it to maintain structural balance.

Bitcoin’s ability to defend this zone highlights the ongoing demand for the asset, despite external pressures.

However, Bitcoin’s price remains trapped within this range, with no clear direction. A move above the $92,000 level could change the market’s control, shifting the momentum toward buyers.

Until then, Bitcoin’s price action remains constrained as the investigation continues to add uncertainty.

Related Reading: Jerome Powell Speech Boosts Bitcoin as Traders Weigh Rate Cut Path

Cup-and-Handle Pattern Suggests Potential for Price Recovery

Bitcoin has formed a cup-and-handle pattern, which typically signals a bullish market outlook.

The pattern consists of a rounded bottom followed by a consolidation phase, which indicates that demand for Bitcoin remains strong.

The handle portion of the pattern suggests that buyers are actively absorbing selling pressure.

Despite facing resistance at $92,000, Bitcoin has not broken down to lower levels. Instead, it has respected ascending support, suggesting that buyers are still in control.

This indicates that the current price action is more about consolidation than distribution.

Bitcoin nearing key resistance at $92K, targeting $95K next – Source: TradingView

If Bitcoin manages to break through the $92,000 resistance, the cup-and-handle pattern will be completed. This could open the path for Bitcoin to test higher levels, such as $95,000.

Analysts have noted that a move to $95,000 is a likely outcome, with market participants giving it a 57% chance in the near future.

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