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Bitcoin rose slightly on Tuesday but still remains below the $90,000 mark, now hovering near its one-month low, as traders remain cautious after Trump threatened to raise tariffs by 25% on South Korea and ahead of the Federal Reserve policy meeting.
BTC Price lined a fraction of a percentage over the past 24 hours to trade at $88,269 as of 3:18 a.m. as it continues to struggle to regain notable momentum after steep losses last week and underperforms other assets.
The crypto market also saw an uptick to reach a market capitalization of around $3.07 trillion.
Trade tensions rise as Trump hits S. Korea with 25% tariffs
US President Donald Trump announced he would increase tariffs on South Korean imports to 25% after accusing the country of failing to honor a trade deal reached last year.
Under the October 2025 deal, Seoul committed to investing $350 billion in US strategic industries in exchange for tariffs capped at 15%.
However, the government noted that “it is unlikely” that the investment could begin in the first half of this year, citing administrative reasons and volatility in the foreign exchange market.
In a social media post, Trump said he would increase levies on South Korean imports to 25% on various products, including automobiles, lumber, pharmaceuticals and “all other reciprocal TARIFFS.”
Trump: I hereby increase South Korean tariffs on automobiles, lumber, pharmaceuticals and all other reciprocal tariffs from 15% to 25% – $QQQ $SPY pic.twitter.com/eMFvEjB1fk
– Hardik Shah (@AIStockSavvy) January 26, 2026
According to Trump, South Korean lawmakers were slow to approve the deal, while the United States moved quickly to reduce its tariffs in accordance with the agreed deal.
After Trump threat After imposing 100% tariffs on Canada over the weekend, and now South Korea, traders remain cautious, pushing safe-haven assets like gold and silver to all-time highs.
Traders monitor Federal Reserve decision
Adding to market indecision, attention has shifted to the two-day Federal Reserve meeting, which begins today, January 27, and ends January 28. Economists generally expect policymakers to keep interest rates unchanged on Wednesday.
Traders are closely watching the Fed’s statement and Chairman Jerome Powell’s news conference for clues on the timing of possible rate cuts and the central bank’s inflation outlook.
💥 BREAK
🇺🇸 FEDERAL RESERVE ANNOUNCES ITS DECISION ON INTEREST RATES THIS WEDNESDAY AT 2:00 P.M. ET
THE DOLLAR INDEX IS SLIDING SHARPLY AND ALL EYES ARE ON THE FED.
WILL THEY PULL THE TRIGGER ON A RATE CUT? 👀 pic.twitter.com/0sF2lOiPp2
– Mr. Crypto Whale 🐋 (@Mrcryptoxwhale) January 26, 2026
Any change in tone from Powell could influence risk sentiment and liquidity conditions, both of which are key drivers of risk assets like Bitcoin.
With Bitcoin down 4.5% over the past 2 weeks, can it recover above $90,000?
Bitcoin Price Analysis: BTC Holds Above Support
Bitcoin is currently trading within a well-defined consolidation range, following a sideways trend, with the asset holding near the $86,500-$89,000 support zone after a sharp pullback from late 2025 highs.
This area aligns with a previous demand area in December as BTC formed strong support. BTC Price is now below the 50-day simple moving average (SMA) ($90,025) and the 200-day SMA around $104,800, which continues to reflect the broader long-term uptrend.
After a strong rally earlier in 2025, Bitcoin established a series of higher highs before the momentum stalled near its all-time high around $126,000. This rejection led to a sustained price correction to around $80,500.
Since this drop, the BTC stock price has moved into a range-bound structure, with buyers repeatedly approaching the $86,000 zone, as highlighted by multiple downside rejections. This behavior suggests that underlying demand is still in play, even as attempts to move higher continue to be met with resistance.
Each push into the $93,000-$95,000 region resulted in sales, confirming this area as an active supply zone.
Momentum indicators echo this cautious tone. The daily RSI is currently hovering near 42, below the neutral level of 50. This shows reduced bullish momentum and a trend toward seller control, although the RSI is not yet in deep oversold territory.
BTC Price Prediction: $90,000 in Sight
From a technical perspective, the Bitcoin price is approaching a decision zone. Holding above the $86,000-$88,000 support region could allow BTC price to stabilize and attempt a further push towards the $93,000-$95,000 resistance zone.
A sustained daily close above the 50-day SMA would improve the bullish narrative and increase the likelihood of a recovery towards the $100,000-$104,000 zone, close to the 200-day SMA and previous breakout levels.
On the other hand, a confirmed break below the current support range around the $86,000 zone would invalidate any bullish attempts. In this scenario, the next likely support zone and cushion against downward pressure could be the $84,475 level, which previously served as a demand zone.
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