Bitcoin under price pressure: (BTC/USD) fails to hold the $88000 level. Is a recovery on the way?

[Ben Graham]

• Bitcoin (BTC/USD) is struggling below the $88,000 level and recently dipped under $85,000
• The slump is attributed to institutional selloffs (>$160M in ETF outflows this week), the US Federal Reserve maintaining higher interest rates, and the strong performance of Gold as the preferred safe-haven asset.
• Key resistance is at $90,000, while a sustained drop below $85,000 opens the door to $80,000 and potentially $75,000.

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Bitcoin is having a difficult start to the end of January. The world's most famous cryptocurrency is currently struggling to stay above $88,000.

For many market participants, this is a worrying sign, as the price has dropped from higher levels earlier in the week at a time when the US Dollar has reached four-year lows.

Looking at the week thus far and Bitcoin is only down around 1.6% at the time of writing. Given the volatility we are seeing across the board, this is surprising to say the least.

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Source: TradingView

Why is Bitcoin struggling?

There are several main reasons why Bitcoin is feeling the pressure right now and perhaps one of the more surprising ones is Gold prices.

While Bitcoin is struggling, gold has been doing very well, reaching record highs over $5,500 an ounce. Investors looking for a "safe" place to hide from economic trouble are currently choosing gold over Bitcoin.

The precious metal is up over $1000 for the month of January alone.

For much of the past decade, Bitcoin proponents have championed the asset as "Digital Gold," arguing that its fixed supply and decentralized nature make it the ultimate hedge against geopolitical risk and inflation.

However, events in late January 2026 have proven that this isn't necessarily true. While gold prices have jumped to record highs, Bitcoin has been stuck in a slump, losing about 30% of its value since its peak in October. This suggests that Bitcoin isn't behaving like gold when things get rocky in the real world.

The question is will this dent the appetite of Bitcoin for a while longer as a hedge, particularly from the institutional side?

Bitcoin ETFs have seen a lot of money leaving lately. This week alone, about $160 million has been pulled out of these funds. When these big players sell, it puts downward pressure on the price.

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Source: Farside Investors

Whether this selloff leads to a more prolonged one remains to be seen and this could have a bearing on where Bitcoin prices head to next.

Another factor behind the recent malaise could be down to Wednesday's US Federal Reserve meeting. The Fed decided to keep interest rates the same (between 3.50% and 3.75%). While they didn't raise rates, they also didn't lower them.

The higher rate environment makes safety more appealing while also leaving the retail side of market participants with less disposable income to invest in the higher risk higher reward assets like Bitcoin.

What is the Outlook for the Future? The next few days will be very important for Bitcoin.

The Risk of a Bigger Drop: Some analysts warn that if the US government shutdown lasts a long time, Bitcoin could fall much further. If people continue to panic, the price might even slide toward $60,000. This would be a 30% drop from where it is now.

Looking at the technical picture and Bitcoin’s position as of January 29, 2026, is precarious. The asset has failed to consolidate above the $89,000 mark.

Earlier in the day we saw a broader market selloff with Bitcoin dropping below the $85000 mark, before recovering to trade at $85460 at the time of writing.

The drop also means that Bitcoin is now around $3000 below the 50-day MA which rests at $88678.

The period-14 RSI on the four-hour chart also dipped into oversold territory but is attempting to move back above the key 30-level. A move back above may be seen as a sign that bullish momentum may be returning.

If that is the case it will be interesting to see if bulls have the power to push beyond the $90000 which has held price back since Tuesday January 20, 2026.

A clean and sustained break above the $90000 level is needed and even then there is a host of resistance beyond that which has proven difficult to navigate for Bitcoin in recent months.

The $95000-$97000 range in particular has been tough and will likely be so once again if bulls are able to take charge.

However, a four-hour candle close below the $85000 handle does open up a potential run toward $80000 and then the $75000 and $60000 mark.

Bitcoin (BTC/USD) Four-Hour Chart, January 29, 2026

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Source: TradingView.com (click to enlarge)

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