Bitcoin is seeking the recovery of $90,000 as US President Donald Trump dropped tariff threats and ruled out taking Greenland by force from an ally.
Trump’s theatrics and resulting tensions have kept markets on edge this week, prompting investors to take the latest developments with a grain of salt, even as the relief was palpable.
BTC is up a fraction of a percentage to trade at $89,955 as of 1:19 a.m. EST, with an intraday low of $87,304 and a high of $90,295, according to Coingecko facts.
The crypto market also rose to $3.13 trillion in market capitalization. As a result, total liquidations in the crypto market reached $605 million.
Trump backs away from EU tariffs, markets are higher
Crypto investors started taking risks again after President Donald Trump took a calmer tone on Greenland and indicated a path to a deal that took some tension out of the markets.
Trump said he had reached the “framework of a future deal” involving NATO over Greenland and signaled he would hold off the tariff threat.
JUST IN: Trump says the US has outlined a framework for a future deal involving Greenland, after meeting with NATO Secretary General Mark Rutte
Rates scheduled for February 1 have been postponed.
The negotiations will be led by Vice President JD Vance and Secretary of State Marco Rubio…— Laura Shin (@laurashin) January 21, 2026
“It’s a long-term deal. It’s the ultimate long-term deal. It puts everyone in a great position, especially when it comes to security and minerals,” Trump told reporters.
Speaking at the World Economic Forum in Davos, Trump said he would not impose the tariffs and ruled out the use of force in the Danush territory dispute.
“I will not do that,” the US president said in Davos about an attack to secure Greenland.
“Okay? Now everyone’s like, ‘Oh, great,’ that’s probably the most important statement I made because people thought I was going to use violence. I don’t have to use violence, I don’t want to use violence, I won’t use violence.”
Trump’s words came as markets awaited the full extent of EU trade retaliation over the Greenland issue.
As the crypto markets moved higher, gold prices remained largely stable after hitting an all-time high of nearly $4,900/ounce in the previous session.
Silver prices rose 1% to $94.03 per ounce, just below the record high of $95.89/oz earlier this week.
Bitcoin Price Set for a Rally Above $100,000
Bitcoin price currently consolidating around the $89,000-$90,000 region, just above short-term support around $87,000-$88,000, which buyers have defended after the sharp sell-off from November highs.
This consolidation comes after a sharp decline from the $115,000 area, where selling pressure accelerated and forced the price of BTC into a corrective phase. Demand was near the $82,000 zone. The recovery from this area suggests that long-term downward momentum has waned.
Bitcoin is trading around the 50-day Simple Moving Average (SMA) near $90,200, but remains well below the 200-day SMA around $105,000, which remains major upside resistance.
The downward slope of the 200-day SMA indicates that the broader trend remains bearish unless Bitcoin can regain this level and stay above it.
Bitcoin’s Relative Strength Index (RSI) is hovering around 45 and is below the neutral 50. This suggests that momentum remains weak, but not oversold, leaving room for a recovery attempt if buying pressure increases.
From the 1-day BTC/USD chart, Bitcoin price is trading within an ascending channel after the sell-off. This structure often represents a bearish continuation pattern, where the price is currently moving between channel support and resistance. A move towards the $94,000-$98,000 resistance zone is possible, where the upper channel boundary lines up with previous rejection levels.
A clear break above $98,000, followed by a retracement of the 200-day SMA to $105,000, would be the first meaningful signal of a trend reversal.
For Bitcoin to realistically target a sustained move back above $100,000, a confirmed trend shift would be required, which could lead to a close above the $95,000 zone.
Conversely, the inability to break the channel resistance could trigger another pullback, with $88,000 acting as initial support, followed by the $85,000 demand zone as selling pressure returns.
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