BTC stalls at $90k as a bearish flag forms. With capital rotating to 'shiny rocks,' is a crash to $80,633 next? | Credit: Hameem Sarwar
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Key Takeaways
Gold climbed to a record $4,600 as uncertainty over the Federal Reserve’s next move drove demand for safe-haven assets.
Bitcoin hovered near $90,000, remaining range-bound despite heightened political and macroeconomic tensions.
If current momentum holds, gold could push toward $5,000, while Bitcoin faces a decisive moment between a breakout and a deeper pullback.
Gold’s price just hit a new all-time high at $4,600. Bitcoin (BTC), on the other hand, has barely moved higher over the past 24 hours.
Amid that, a Department of Justice (DOJ) investigation tied to Fed Chair Jerome Powell is adding fresh uncertainty.
So, where do the precious metals and flagship cryptocurrencies go from here?
In this analysis, CCN breaks down why gold has surged to record highs while Bitcoin has struggled to break above $93,000, and examines what could come next for both assets.
As concerns mounted, President Donald Trump warned of possible military action, prompting investors to rotate into traditional safe havens, such as gold.
Confidence in U.S. institutions also took a hit after Federal Reserve Chair Jerome Powell disclosed that the DOJ had issued grand jury subpoenas tied to his past testimony.
The development raised fresh questions about the Fed’s independence at a sensitive moment for monetary policy.
Weak U.S. labor data further fueled gold’s momentum. Jobs figures released on Friday, Jan. 9, showed just 50,000 jobs added in December, well below expectations.
This strengthened bets that the Fed could be forced to cut rates in 2026 to avoid a recession.
From a technical standpoint, gold briefly pulled back to around $4,574, but the broader structure remains constructive.
The price continues to trade within an ascending triangle, a pattern that often signals continuation as long as higher lows hold.
Meanwhile, sentiment among holders stays positive. The Bull Bear Power (BBP) also favors bulls, which suggests buyers still hold the upper hand despite the pullback.
Should this remain the same, gold’s price could surge past $5,000 before the second half of the new year.
However, if demand stalls, this might not happen. In that scenario, the market value might decline to $3,829 near the 0.618 golden ratio.
The “Powell Probe”: A Constitutional Crisis for Markets
On the same day gold hit its record high, Powell made a rare public statement, accusing the Trump administration of applying political pressure.
Powell said the DOJ investigation centers on alleged cost overruns related to renovations at the Fed’s Washington headquarters.
He characterized the probe as a “pretext” aimed at pressuring the central bank into cutting interest rates.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether monetary policy will be directed by political pressure,” Powell said in a video statement.
Despite the controversy, Powell said he intends to remain in his role.
“I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people,” he added.
While the investigation surprised some observers, it follows months of public criticism from President Trump, who has repeatedly expressed frustration with Powell’s reluctance to cut rates.
Trump later said he was unaware of the probe but again questioned Powell’s performance.
Regarding this development, Farzam Ehsani, CEO of cryptocurrency exchange VALR, noted that it could affect broader investor sentiment.
“The current US administration’s pressure on Jerome Powell sets a concerning precedent. Central bank independence is traditionally considered a pillar of macroeconomic stability, and any attempts at political influence affect investor confidence. The very fact of a criminal investigation against the current Fed chairman appears to be a tool of pressure, signaling a deep rift within the American establishment.,” Ehsani told CCN.
Furthermore, the CEO mentioned that the impact on Bitcoin and gold could depend on rate cuts.
“The crypto market could react sharply to the outcome of the conflict. If the Fed holds firm, the market could return to its fundamental scenario. If the White House can push through a rate cut and launches stimulus measures, Bitcoin and gold could surge higher,” He added during our conversation
BTC Price Analysis: Trend Unclear
For Bitcoin’s price, this position introduces uncertainty, especially since the asset remains 27.15% below its all-time high.
At the time of writing, BTC trades near $90,166 and remains in a consolidation phase.
However, the daily chart indicates a bear flag is forming. A bear flag is a short consolidation that forms after a sharp decline.
It often acts as a pause before the prior downtrend resumes.
If this pattern confirms, Bitcoin’s price could face another leg lower, especially if it breaks below the flag’s support with weak buying pressure.
However, indicators suggest that the BTC price is not yet ready for a notable correction.
One reason for this is the Chaikin Money Flow (CMF), which has broken above the zero signal line.
This indicates buying pressure. Should that remain the same, Bitcoin might invalidate the bearish setup and breach the $98,119 resistance.
However, the red line of the Supertrend remains above the price, indicating that Bitcoin still has a hurdle to overcome.
Should bulls fail to neutralize this, Bitcoin’s price risks a deep drop to $80,633.
In summary, gold’s price has the potential to climb higher toward $5,000.
However, for BTC, the outcome could go either way, considering the analysis.
Meanwhile, like Ehsani, Ray Youssef, CEO of crypto app NoOnes, noted that a rate cut could be vital to Bitcoin’s growth.
However, he still mentioned that it could also depend on other factors, such as geopolitical stability, accumulation, and distribution.
“Bitcoin has had a strong start to the year, and some investors expect the leading cryptocurrency to continue its growth amid currency devaluation and rising stock, metal, and commodity prices. However, the market continues to see active BTC selling during the U.S. trading session,” Youssef stated.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
