Bitcoin Price Prediction Amid DOJ Probe as Powell Indictment Fears Cool

Bitcoin price continues to compress below key resistance as macro risk re-enters the equation. BTC price trades within a tightening range after failing to reclaim higher ground, while external pressure builds around U.S. monetary credibility. The Federal Reserve Chair Jerome Powell investigation by the Department of Justice creates institutional uncertainty at an opportune time when risk assets are sensitive.

DOJ Probe Adds Friction to Bitcoin Price Structure

The DOJ investigation into Jerome Powell initially raised concerns around institutional disruption, which can influence Bitcoin price behavior through confidence channels. Nevertheless, recent events indicate that markets are lowering the chances of escalation.

Prediction market data shows traders assigning a low likelihood to Powell facing federal charges before the end of his term, signaling that expectations have shifted toward a contained outcome.

This repricing is important to BTC price since systemic uncertainty is more likely to cause defensive positioning. With the decline of the indictment fears, capital ceases to value forced change of leadership or sudden change of policy.

Instead, the probe now acts as a background risk rather than a dominant catalyst. This change can be used to explain why the Bitcoin price has not been structurally affected by the headline risk.

The Bitcoin Outlook is defined by the 92K Zone

BTC price is currently trading under the 92K zone, which still characterizes short-term control. The asset  has been ranging between $90,500 and $92,000 after failing to gain acceptance above 92K, implying that sellers continue to aggressively defend 92K. 

Nonetheless, buyers have still defended the wider 88K-88.5K demand zone and avoided further decline as well as maintaining structural balance. This dynamic shapes the long-term BTC price outlook.

The price behavior is compressed and not rejected. Every pullback has been above previous lows, and this continues to put pressure under resistance. This narrow range is positioning and not distribution.

A decisive switch of 92K to support would change the market control and make the expectations shift significantly. Until that occurs, BTC price remains structurally constructive but unresolved, with direction hinging on how price behaves around this upper boundary. 

Cup-and-Handle Structure Keeps BTC Price Biased Higher

The recent BTC price movement indicates a cup-and-handle formation that started to form in mid-December. The rounded bottom created by constant demand and the continued handle depicts consolidation as opposed to distribution.

Price still respects the ascending support, and it maintains the higher lows and indicates that the buyers are still active during the pullbacks. BTC has since regained the 90K level but was rejected when trying to move past 92K. At the time of press Bitcoin market value trades around  $91,400 just below the $92,000 threshold.

In spite of such rejection, structure is constructive. The failure to break lower after attempting to break at $92K is indicative of absorption of supply and not exhaustion. If BTC price flips the 92K level into support, the pattern completes, opening a direct path toward the 95K neckline. 

This framework is in line with the broader market expectations, with Polymarket participants giving Bitcoin a 57% chance of hitting $95K in January, and the chances of a move to $100K being significantly lower.

To sum up, Bitcoin price continues to compress beneath resistance while policy uncertainty rises following the DOJ probe into the Fed. Rather than triggering volatility, this backdrop has reinforced structural discipline, with BTC price holding ascending support. 

If price recovers $92K, the macro hedging demand and technical structure are congruent with continuation. A breakdown in maintaining higher lows would be a pointer that institutional uncertainty cannot sustain additional upside.