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Bitcoin rose slightly on Tuesday but still remains below the $90,000 mark, not far from its current one-month low, as President Trump threatens to raise tariffs to 25% on South Korea and traders remain cautious ahead of the Federal Reserve’s policy meeting.
BTC price on the edge In the last 24 hours it was trading at $88,269 as of 03:18. It continues to struggle to regain notable momentum after sharp losses last week and has underperformed other assets.
The cryptocurrency market also saw a slight increase in market capitalization to approximately $3.07 trillion.
Trade tensions heightened as Trump imposed a 25% tariff on South Korea.
U.S. President Donald Trump announced that he would increase tariffs on Korean imports to 25% after accusing Korea of failing to implement a trade agreement reached last year.
Under the October 2025 agreement, South Korea pledged to invest $350 billion in strategic U.S. industries in return for limiting tariffs to 15%.
However, the government stated that it is unlikely that investment will begin in the first half of this year due to administrative reasons and exchange rate market volatility.
In a social media post, President Trump announced that he would increase tariffs on Korean imports to 25% across a wide range of products, including automobiles, lumber, pharmaceuticals, and all other reciprocal tariffs.
TRUMP: I hereby increase Korea’s tariffs on automobiles, lumber, pharmaceuticals and all other bilateral tariffs from 15% to 25% – $QQQ $SPY pic.twitter.com/eMFvEjB1fk
— Hardik Shah (@AIStockSavvy) January 26, 2026
While South Korean lawmakers were slow to approve the deal, the United States moved quickly to reduce tariffs in line with the agreed-upon deal, according to President Trump.
After Trump be threatened Despite the decision to impose 100% tariffs on Canada over the weekend, traders are currently remaining cautious in South Korea, pushing safe-haven assets such as gold and silver to record highs.
Traders watching the Federal Reserve’s decision
Adding to the market’s indecision, focus has shifted to the Federal Reserve’s two-day meeting, which begins today, January 27th, and ends January 28th. Economists widely expect policymakers to keep rates unchanged on Wednesday.
Traders are closely watching the Federal Reserve’s statements and Chairman Jerome Powell’s press conference for clues about the timing of a potential interest rate cut and the central bank’s inflation outlook.
🔥Breaking News
🇺🇸 The Federal Reserve will announce its interest rate decision this Wednesday at 2 PM ET.
The dollar index is falling sharply and all eyes are on the Federal Reserve.
Will we pull the trigger on an interest rate cut? 🙌 pic.twitter.com/0sF2lOiPp2
—Mr. Crypto Whale 🐋 (@Mrcryptoxwhale) January 26, 2026
A change in Powell’s tone could impact risk sentiment and liquidity conditions, which are key drivers for risk assets such as Bitcoin.
With Bitcoin down 4.5% over the past two weeks, can it recover above $90,000?
Bitcoin Price Analysis: BTC Remains Strong Above Support.
Bitcoin is currently trading in a sideways pattern within a well-defined consolidation range, with the asset hovering near the $86,500-$89,000 support zone after a sharp decline from its late 2025 highs.
This area coincides with the pre-December demand area as BTC forms strong support. BTC price It is currently positioned below the 50-day simple moving average (SMA) ($90,025) and the 200-day SMA around $104,800, continuing to reflect the broader long-term uptrend.
After a strong rally in early 2025, Bitcoin hit a series of higher highs before momentum hovered near its all-time high of $126,000. Due to these rejections, the price was continually adjusted to approximately $80,500.
Following that decline, BTC price shifted into a range-bound structure, with buyers repeatedly entering near $86,000, as highlighted by multiple downward rejections. This behavior suggests that fundamental demand is still at work, even though attempts to rise continue to be met with resistance.
Each push toward the $93,000-$95,000 region has resulted in sales, confirming the region as an active supply zone.
Momentum indicators reflect this cautious mood. The daily RSI is currently hovering near 42, below the neutral level of 50. This shows that the RSI is not yet in grossly oversold territory, but the bullish momentum is decreasing and tilting towards seller control.
BTC Price Prediction: Expected to hit $90,000
From a technical perspective, Bitcoin price is approaching decision territory. Holding above the $86,000-$88,000 support area could stabilize BTC price and attempt another push towards the $93,000-$95,000 resistance area.
A sustained daily close above the 50-day SMA would improve the bullish narrative and increase the odds of a recovery towards the $100,000-$104,000 area near the 200-day SMA and previous breakout levels.
The downside is that a confirmed break below the current support around $86,000 would invalidate any bullish attempts. In this scenario, the next possible support zone and buffer against downward pressure could be the $84,475 level, which previously acted as a demand zone.
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