Bitcoin Price Analysis: BTC Struggling To Build Momentum. Will Things Change Soon?

Bitcoin (BTC) is struggling to build momentum and push above $103,000 as markets fall back in the red after a brief recovery. BTC has been marginally down over the past 24 hours and is trading just above $192,500. 

BTC has spent nearly all of the current week in the red. However, if buyers can build momentum during the current session, a reversal could be on the cards. 

DeepSeek Good For Bitcoin (BTC) 

Bitcoin (BTC) remains in the doldrums as markets struggle to recover after Monday’s collapse. Investors are also worried about the Federal Open Markets Committee (FOMC) meeting and whether the Fed will keep interest rates unchanged or lower them. Most analysts expect rates to remain unchanged. However, some have suggested a “dovish surprise” for Bitcoin that could help blunt the impact of DeepSeek’s emergence on risk assets like BTC. However, Standard Chartered’s Geoffrey Kendrick expects the flagship cryptocurrency to recover from the market collapse, expecting a rebound over the next few days. However, the strength and timing of the return depends on the Federal Reserve’s FOMC meeting and Jerome Powell. 

“DeepSeek has nothing to do with Bitcoin, and in fact, as DeepSeek means the price of AI is lower, it actually lowers inflation and is good for risk assets (like Bitcoin) that have no AI presence. Risk assets will now wait for the Fed to pass tonight,” he adds. “If it is neutral I think BTC trades back above $105k, where it was pre-DeepSeek.”

However, irrespective of the outcome of the FOMC meeting, analysts believe the coming few months will be kind to BTC’s price, thanks to growing institutional demand and accumulation. CryptoMondays founder Lou Kerner stated, 

“While ‘risk off’ events like DeepSix can dampen near-term price action, the longer term outlook for bitcoin is as bullish as ever, as individuals, corporates, TradFi, and governments around the world are all poised for accumulation.”

Czech Central Bank Eyes Bitcoin (BTC) Investment

Czech National Bank Governor Aleš Michl wants to put Bitcoin (BTC) in the country’s reserves. If the proposal is approved, up to 5% of the Czech National Bank’s €140 billion reserves could be allocated to BTC. Michl will present his proposal to the bank’s board on January 30, stating that BTC seems good for diversifying the bank’s assets. Michl acknowledged the asset’s volatility but highlighted growing investor interest, especially after BlackRock, the world’s largest asset manager, launched spot Bitcoin ETFs. 

“Of course, if you compare my position with other bankers, then I’m the one entering the jungle, or the pioneer. I used to run an investment fund, so I’m a typical investment banker, I would say, I like profitability.”

If the plan is approved, the Czech National Bank would become the first Western Central Bank to hold BTC in its reserves. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) is still consolidating, oscillating between $10,000 and $105,000. Buyers have been unable to build momentum and push beyond $105,000. BTC’s support level of $100,000 was tested this week as the asset plummeted to an intraday low of $97,766 at the beginning of the week. BTC’s muted price action comes as markets await the outcome of the FOMC meeting. The Fed is expected to keep its benchmark rates steady. 

“Bitcoin is consolidating between $100,000 and $102,000 as markets await today’s FOMC meeting, the first monetary policy decision of 2025. While inflation has eased, it remains above target, making it likely the Fed will keep its benchmark rate steady at 4.25%-4.50%. If the Fed chair adopts a hawkish stance, Bitcoin could experience some temporary volatility. Key levels to watch are resistance at $102,200 and support at $99,330.”

BTC encountered significant volatility in the past week, losing momentum after surging to a new all-time high of $109,312. It was back in the red by Wednesday, dropping 2.21% to $103,715. Thursday saw BTC drop to an intraday low of $101,296 and rise to an intraday high of $106,903 before settling at $104,004, registering a marginal increase. Buyers retained control on Thursday as BTC rose to $107,038 before settling at $104,874. Sentiment began changing over the weekend as BTC registered a marginal decline on Saturday before dropping over 2% on Sunday to settle at $102,655.

Source: TradingView

Bearish sentiment intensified substantially on Monday as markets collapsed. As a result, BTC plummeted to an intraday low of $97,766, briefly slipping below key moving averages and $100,000. However, the price recovered from this level to reclaim $100,000 and ultimately settled at $102,064, dropping 0.58%. Bearish sentiment persisted on Tuesday as sellers drove BTC down 0.69% to $101,362, but not before falling to a low of $100,190. The current session sees BTC up nearly 1.50% as BTC looks to regain lost ground and push towards $105,000. If buyers can retain control, BTC could push towards $105,000. If markets rally following the FOMC meeting, BTC could be on course to move to $110,000. Alternatively, if sellers regain control and drive BTC below $100,000, it could drop to $90,000. If this level is breached, BTC could fall as low as $80,000. The MACD is flipped to bearish, indicating a possible downtrend. However, the RSI is above 50, indicating market momentum is bullish and favorable for a rally.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.