Bitcoin Price Prediction – Why BTC Could Rally to $96,881 Soon

Highlights:

• Bitcoin is trading at the $85,302 support level
• Rally off this price level could send Bitcoin to $96,881 short term
• Fed week volatility is likely to hold Bitcoin range-bound in the short term

Bitcoin (BTC) continues to show weakness in the short term. In the day, Bitcoin is down by 1% to trade at $87,754.38. At the same time, trading volumes have spiked quite heavily intraday. In the last 24 hours, Bitcoin trading volumes have shot up by 189.97% to stand at $45.35 million. 

Such a surge in trading volumes at a time when the price is going down could point to fear as spot holders sell. It could also mean leveraged shorts are on the rise in expectation of a correction in the short term. Multiple factors could drive the market to continue to trade in a narrow range, but with a downward bias in the short term.

Fed Week Caution Holds Bitcoin Around Support Level

One of them is the fact that this is the Fed week. The Federal Reserve policy makers are expected to meet later this week. This period usually attracts caution among investors due to the volatility that follows. That’s because, regardless of the decision the Fed takes, the price tends to spike in both directions before it finds clarity. As such, retail investors, who mostly use leverage for trading, may find Bitcoin a bit of a risk until there is clarity on interest rates from the Fed.

🚨 THIS WEEK IS MAXIMUM VOLATILITY

Markets are walking into a stacked macro calendar 👇

MONDAY → FED GDP REPORT
TUESDAY → LIQUIDITY INJECTION ($8.3B)
WEDNESDAY → FED INTEREST RATE DECISION
THURSDAY → U.S. BALANCE SHEET UPDATE
FRIDAY → FOMC PRESIDENT SPEECH

That’s… pic.twitter.com/YlIhwEps5X

— Crypto Tice (@CryptoTice_) January 26, 2026

Delays in the Clarity Act Keeping Investors Away From Bitcoin

Besides the expectations around the Fed this week, Bitcoin’s lack of price direction is being driven by delays in the Clarity Act. Last week, Bitcoin pumped and came close to retesting $100k. This followed expectations that the Clarity Bill would soon pass into an act.

However, when cryptocurrency industry heavyweights raised an issue with the bill, it was delayed. This has triggered a slowdown in the price of Bitcoin as investors hold back until the bill is passed. Until this happens, Bitcoin could even drop further in the short to medium term, as investors seek safety.

THE CLARITY ACT COMES FIRST

Representative French Hill says passing the CLARITY Act is essential before stablecoin laws can actually work.

Do you agree? pic.twitter.com/5QGlxulpc5

— Purest (@Iam_Purest) January 26, 2026

Uncertainties in the Macro Environment Are Holding Back Bitcoin

The macro environment is also weighing heavily on Bitcoin in the short term. The recent moves by the US in attempting to take over Greenland have spiked fears of imperialism. That’s because it is coming immediately after the US moved into Venezuela and arrested its president. This has also raised fears that other countries, such as China, could take a cue from the US and invade places of interest to them.

All these events are driving capital away from risk-on assets such as Bitcoin and into Gold and other risk-off assets. The fact that Gold is pushing towards $5000, and with FOMO rising, could see Bitcoin either continue to consolidate, or even drop even further in the short term.

So far, futures don’t really care.

100% Canada tariff threat.
78% odds of a government shutdown.

Equities are holding up like it’s background noise.

Meanwhile, $BTC is still stuck below $88K.

That tells you where the real sensitivity is right now.

Let’s see what happens when… pic.twitter.com/n0MbGzwyLa

— Kyledoops (@kyledoops) January 26, 2026

Institutional Buying Could Give Bitcoin A Price Floor

However, Bitcoin could hold at current levels or rally due to whale behavior. Major institutions such as Strategy continue to invest in Bitcoin. Other whale wallets are also accumulating Bitcoin, a factor that could offer a price floor in the short term. Whale activity is especially critical in this Fed week when markets tend to exhibit the most volatility. It increases the odds of Bitcoin holding between $90k and $86k in the short term.

Technical Analysis – Bitcoin Price Pushing Towards Support

Bitcoin was on a minor decline over the weekend, price action that brought it close to the $85,302 support. While the price has made a minor rebound intraday, it is yet to make a clear rally off support. If Bitcoin rallies off this support, it could hit $96,881 in the short term. 

On the other hand, if fears around Fed week and the macro environment push Bitcoin through the $85,302 support, a correction to $80,621 could follow. Of these two scenarios, a rally to $96,881 could follow. That’s because there is progress on the clarity bill, and expectations are high that the Fed will leave rates unchanged.