Daily Crypto Signals: Bitcoin Faces $86K Support Test, XRP Eyes $21.5 Target Amid Market Turbulence
Crypto markets struggled through a turbulent weekend as Bitcoin extended losses below $90,000 while facing a critical $86,300 support
Quick overview
- Bitcoin extended losses below $90,000, struggling with a critical support level at $86,300 amid macroeconomic uncertainties and significant ETF outflows totaling $1.72 billion over five days.
- XRP has entered a pivotal Phase 4 in its long-term chart structure, with analysts projecting a potential rally to $21.5 despite currently trading 48% below its all-time high.
- The cryptocurrency market faced challenges due to external factors, including a winter storm that disrupted Bitcoin mining and high electrical demand leading to power outages.
- Institutional adoption is on the rise, as Colombia's AFP Protección announced plans to offer Bitcoin investment options, following similar moves by other pension funds.
Crypto markets struggled through a turbulent weekend as Bitcoin BTC/USD extended losses below $90,000 while facing a critical $86,300 support level, driven by macroeconomic uncertainties and sustained ETF outflows totaling $1.72 billion over five days. Meanwhile, XRP XRP/USD entered a pivotal Phase 4 in its long-term chart structure, with technical analysts projecting a potential rally to $21.5 despite currently trading 48% below its recent all-time high.
Crypto Market Developments
The cryptocurrency market faced a lot of problems as a number of things came together to push down the values of digital assets. Winter storm Fern stopped Bitcoin mining activities all throughout the US. Since Friday, Foundry USA, the world’s largest mining pool, has had to cut its hashrate by about 60%. The drop was almost 200 exahashes per second, which slowed block production to every 12 minutes for a short time. This was because miners had to deal with high electrical demand and grid stress that left more than a million people without power.
In a different step that shows institutional adoption, AFP Protección, Colombia’s second-largest private pension fund manager, said it would start an investment vehicle that would give people access to Bitcoin. This decision comes after Skandia Administradora de Fondos de Pensiones y Cesantías started giving Bitcoin exposure in September. Juan David Correa, president of Protección SA, says that access would be limited and offered through tailored advisory processes meant to assess investor risk profiles. The strategic choice was made because diversification is the fundamental driver.
Bitcoin Battles Critical Support Levels at $86,300
Bitcoin kept going down over the weekend, losing 1.6% as BTC/USD hit $87,471 on Bitstamp, which was a multiday low going into the weekly close on Sunday. Since November 13, the top cryptocurrency has not been able to get back to the psychological $100,000 threshold. At the time of publication, it was trading at about $89,160. Market analysts say that there are growing macroeconomic problems, such as the possibility of another US government shutdown, President Trump’s threats of tariffs on Canada, and the Federal Reserve’s decision on interest rates on January 28.
Trader sentiment is still very negative, and long holdings made up most of the $250 million in crypto liquidations in the last 24 hours. Technical expert CrypNuevo said that Bitcoin losing its mid-range support is “a bearish sign for continuation to the downside.” Based on exchange order-book liquidity, he said that $86,300 is the key line in the sand for bulls. “Bitcoin losing the mid-range, HTF liquidations going down, and the possibility of a US government shutdown all point to the same thing: Bitcoin will probably drop back to the low $80s in the next few weeks,” CrypNuevo said. They also said that any short-lived pump this week could be a “potential short opportunity.”
On Friday alone, US-based spot Bitcoin ETFs saw $103.5 million in net withdrawals, bringing their streak of outflows to five days in a row. According to Farside data, overall outflows hit almost $1.72 billion over the truncated four-day trading week due to Martin Luther King Jr. Day. This shows that the crypto market is becoming less optimistic. The CME Group’s FedWatch Tool shows that there isn’t much hope for rate decreases at the next FOMC meeting. Even a 0.25% cut is very unlikely, even though the Trump administration is pushing for more easing of monetary policy.
XRP Enters Bullish Phase 4 Structure
According to technical analysts, XRP’s price movement has reached what they call Phase 4 in its long-term chart structure. This is an indication that big price moves are about to happen, based on the cryptocurrency’s trading patterns over the past ten years. XRP has been trading in four different phases since mid-2013, according to analysis provided on social media platform X. The current Phase 4 is similar to the structural change that happened in mid-2017, just before the token’s last climb to all-time highs.
The technical framework shows XRP breaking out of a multi-year compression structure (Phase 3) that lasted from 2019 to mid-2024. This structure was made up of trendlines that were getting closer together, with lower highs and higher lows. When XRP broke out of this consolidation area, Phase 4 officially began. By July 2025, it had risen to a new all-time high of $3.65. Even though it is presently trading at $1.89, which is almost 48% lower than its peak, analysts say that the cryptocurrency is still in Phase 4’s bullish structure.
The long-term technical projection uses Fibonacci extension ratios from the last cycle to find a price objective close to $21.5 by measuring a 6.618 extension from the Phase 3 support low. This very optimistic prediction would mean that prices will go up by about 1,040% from where they are now. XRP must first get back to its all-time high of $3.65, which is the first big technical hurdle and a sign that the cryptocurrency has entered price discovery mode again.
Meanwhile, crypto expert Michaël van de Poppe found something that could be good for XRP’s interaction with precious metals. Van de Poppe said, “For the first time in history, $BTC might print a bullish divergence against Silver on the 3-Day Timeframe.” This means that the coming week could be “extremely volatile” and could mark a bottom as money moves from silver to other assets, which would likely help both Bitcoin and altcoins like XRP.
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