Bitcoin Analysis for January 21: BTC Maintains Key Support Amid Temporary De-Risking

Summary:
Bitcoin (BTC) is navigating through a volatile market, currently trading just above $89,000, reflecting a 5% drop over the last 24 hours. Recent declines are linked to geopolitical risks and a selloff in the bond market, prompting investor caution. Analysts suggest these fluctuations result from temporary de-risking rather than a fundamental shift in demand.

Key Takeaways

Bitcoin is trading above $89,000, down 5% in 24 hours.
Recent price drops stem from geopolitical risks and a bond market selloff.
Despite short-term volatility, Bitcoin has shown resilience with a 0.7% increase over the past month.
Analysts indicate that recent pullbacks are consistent with macroeconomic events.
Trading momentum will depend on maintaining support around $89,000 - $90,000.

Bitcoin BTC

Current Market Overview

Bitcoin is currently trading at slightly above $89,000 after experiencing a significant drop of 5% over the past day. The daily trading range has seen Bitcoin vary between $87,901 and $92,258, showcasing notable volatility. This recent decline can be attributed to geopolitical tensions and a selloff in the bond market, which have instilled caution among investors across asset classes, including cryptocurrencies. Consequently, BTC is facing downward pressure and is still hovering below the crucial psychological threshold of $90,000.

In the past week, Bitcoin has seen a reduction of 6.6%, underscoring ongoing difficulties in the market despite its solid fundamentals. Nevertheless, the pioneering cryptocurrency remains resilient over the past month, having gained 0.7%. Traders are keenly observing the $89,000 to $90,000 range, looking for signs of support and potential for Bitcoin to gain momentum.

Future Outlook for Bitcoin

CryptosRus, an analyst on X, has provided insights regarding Bitcoin's price pullbacks observed between 2025 and 2026. The analysis reveals that these dips correlate with macroeconomic shocks related to tariffs and trade tensions. For instance, the significant decline in April 2025, caused by sweeping tariffs, resulted in a 12% drop in Bitcoin's price.

Bitcoin Exchange Netflow

Similarly, in October 2025, the intensification of the U.S.-China trade conflict contributed to an approximately 8% decline in Bitcoin. Furthermore, a decline in January 2026, amid escalating trade risks between the U.S. and Europe, led to a 7% price drop.

These events demonstrate Bitcoin's sensitivity to broader economic policies, indicating that it functions as a macro-sensitive risk asset influenced by shifts in growth expectations, interest rates, and liquidity. However, despite these fluctuations, CryptosRus notes that exchange netflows have not shown a consistent trend of dumping during these downturns. Instances of temporary inflows during market declines were short-lived, suggesting the market quickly absorbed selling pressure.

This behavior likely reflects a temporary de-risking approach by market participants rather than a significant decline in Bitcoin demand. Should exchange inflows remain consistently high, it could indicate a more substantial shift in market sentiment. In summary, the current volatility seems to stem from macroeconomic policy changes rather than signaling the end of the Bitcoin cycle.

Technical Analysis of Bitcoin

Examining data from TradingView, the price action has been testing the Bollinger Bands. Recently, Bitcoin approached the lower band around $87,645 before bouncing back. The Relative Strength Index now sits at 43.07, indicating that Bitcoin is moving towards neutral territory.

Bitcoin 1-Day Chart

If Bitcoin manages to maintain support above $87,800 and breaks through the middle band near $92,367, it could indicate renewed buying pressure. However, should Bitcoin fail to hold these support levels, it risks further declines, potentially testing $87,645 and lower.

Should the price surpass the middle band, it would suggest increasing buying momentum, potentially driving the price towards the upper Bollinger Band near $97,081.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may reflect the author's personal views and do not necessarily represent those of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses.