Bitcoin Price Prediction Jan 23: Is a $91K Drop Coming Soon?

Bitcoin’s (BTC) price closed Wednesday with a black Marubozu candlestick, signaling that the bearish trend is starting to gain momentum. After being rejected at a key resistance zone between $107k and $109k, Bitcoin formed a short-term reversal pattern, suggesting a potential price drop.

Traders are closely watching key signals for clues on what’s next.

Let’s break down what these developments mean for Bitcoin’s price action and where it could head in the coming days.

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 Donald Trump   Donald J. Trump is a US-based entrepreneur, Pro-crypto Politician, and the 45th and 47th President of the United States of America. He understands the importance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto leader.   Quick Facts   Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Known For Businessman, Pro-Crypto Politician   Once doubtful about Bitcoindominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his kitty. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.   Donald Trump - Career Highlights & Events   2016 – Elected as the 45th President of the United States from the Republican Party.   2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments   2019 – Criticized Bitcoin and Libra on X, dubbing them as "not money"   2024 – Campaign signals potential openness to crypto-friendly reforms   2025 –  Elected as the 47th President of the United States from the Republican Party.   A meme coin, $TRUMP, is associated with Donald Trump, which is listed on the Solana blockchain platform. His family also backs World Liberty Financial (WLF), a crypto venture.     President the cryptocurrency’s bullish outlook has significantly cooled down, possibly due to the sell-the-news narrative. However, long-term investors like MicroStrategy and BlackRock continue to accumulate Bitcoin, showing strong confidence in its future.

Upcoming Economic Events: Tension in the Air?

With the Bank of Japan set to announce its policy rate tomorrow, traders are closely watching for any hints on how this will influence next week’s Federal Reserve interest rate policy. The unpredictability of the Trump administration, along with higher-than-expected inflation data, has added uncertainty to the market, making it harder to predict the next steps.

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By monitoring these key indicators and upcoming economic events, traders are preparing for Bitcoin’s next potential move.

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