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
