Bitcoin price has risen above the $91,000 level to trade at $91,673 as of 2:02 a.m. EST, after Jerome Powell said in a statement that the US Justice Department has threatened criminal charges against him.
However, BTC remains capped within the $90,000-$94,000 range since late November, with the recent surge above $91,000 suggesting the price could still soar back to the $94,000 resistance.
With investors eyeing a move against Powell as a step by the Trump administration towards replacing him, can the price of BTC surge?
Federal Reserve Chair Powell Under Criminal Investigation
The U.S. Attorney’s Office for the District of Columbia has opened a criminal investigation into Federal Reserve Chair Jerome Powell, with the focus on the Fed’s renovation of the central bank’s Washington headquarters and whether his testimony in Congress was true about the project.
Video message from Federal Reserve Chair Jerome H. Powell: https://t.co/5dfrkByGyX pic.twitter.com/O4ecNaYaGH
— Federal Reserve (@federalreserve) January 12, 2026
“On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June,” Powell said.
The Department of Justice (DOJ) investigation is yet another legal front against Powell, whom President Trump has repeatedly attacked for resisting the demand to sharply cut interest rates. As a result, Trump has continued to threaten to fire the Fed chair.
However, Powell reiterates that the DOJ’s action should be viewed in its broader political context within Trump’s administration. According to Powell, the threat of criminal investigation is directly linked to monetary policy decisions.
“Those are pretexts. The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” he said.
Powell has now said that he would continue in his role without yielding to pressure. Powell’s chair term ends in May 2026, and he can stay on the Fed board until 2028, leaving Trump’s next chair pick as a looming catalyst for rates, the dollar, and Bitcoin’s macro bid.
According to the BTC/USD daily chart analysis, the BTC price is currently trading near $91,600, with price action pressing up against a resistance zone between $93,000 and $94,000.
Historical price action shows multiple rejections in this area, but the recent formation of higher lows suggests growing bullish pressure and a potential short-term rally.
Technicals are beginning to support an upside rally. Bitcoin has reclaimed the 50-day Simple Moving Average (SMA) ($89,611), which is now acting as short-term dynamic support.
However, BTC remains well below the 200-day SMA near $106,184, keeping the broader trend corrective rather than fully bullish. The 50-day SMA, which has been flattening and curling upward, reflects improving momentum, while the 200-day SMA remains a major overhead barrier.
Meanwhile, the Relative Strength Index (RSI) is trading around 56, holding above the neutral 50 level. This indicates strengthening bullish momentum without entering overbought conditions, leaving room for further upside if buyers remain in control.
The Moving Average Convergence Divergence (MACD) has also turned positive, with the MACD line crossing above the signal line and the histogram expanding. This bullish crossover supports the sentiment of upside momentum and aligns with the recovery structure on the chart.
As long as Bitcoin holds above the $90,000 support zone, the technical setup favors a continuation toward the $94,000 resistance area.
On the downside, if BTC drops below the 50-day SMA and sustains a move below $89,000, the short-term bullish bias would be invalidated, which could, in turn, expose BTC to a pullback toward the $87,000 support region.
