Is Bitcoin Heading for $60K? Bear Flag Signal Explained
Bitcoin (BTC) is testing a key support level after a sharp drop from its peak. It fell under $90,000 recently and is hovering above the lower edge of a bearish chart pattern. Analysts are watching as the risk of further downside grows, with some pointing to $60,000 as the next possible target.
Bitcoin Slips Below $90K on Global Market Jitters
Bitcoin spent the weekend trading around $95,000 but lost momentum as global markets opened. The move followed fresh tensions between the US and the EU, along with movements in Japanese bond markets, which led to increased pressure on risk assets, which was enough to pull it down from $95,500 to under $92,000.
The cryptocurrency made a small recovery later in the day but slipped early Tuesday again, reaching a low of $87,900 before bouncing back to around $89,000. At the time of writing, Bitcoin is priced at around $89,100. The asset is down 2% over the past 24 hours and almost 6% over the past week (per CoinGecko’s data).
Bear Flag Breakdown May Send BTC Toward $60K
Bitcoin’s recent price action forms a classic bear flag on the daily chart. This pattern follows a steep drop of nearly 32%, from a high near $126,000 to $85,000. Since then, BTC has traded within a rising channel, which is viewed as a temporary pause before another drop.
Crypto analyst Crypto Patel posted,
The pattern suggests that if the $87,000 support fails, the price could fall another 31%, reaching the $60,000–$61,000 area. As previously reported, veteran trader Peter Brandt also noted the risk of Bitcoin falling into the $58,000–$62,000 range if this setup plays out.
Moreover, Michaël van de Poppe, founder of MNF Fund, said the current chart shows Bitcoin taking out recent lows, with RSI levels near oversold conditions. He commented, “We could see a short-term bounce, not a reversal.” For a true reversal to take place, Bitcoin would need to break through multiple resistance levels that still remain above the current price.
The broader market is also in a fragile state. Bond yields are rising, gold is gaining strength, and geopolitical concerns are weighing on investor confidence. With world leaders meeting in Davos on Thursday, traders expect more price swings ahead.
Whales Step In as Selling Builds
More than $1 billion in leveraged crypto positions were wiped out as Bitcoin slipped below $90,000 (per CoinGlass). At the same time, activity from large wallets has increased, according to data from CryptoQuant analyst Amr Taha. On January 20, over $400 million worth of BTC was sent to spot exchanges. A similar move was seen on January 15, followed by a sharp drop to $96,000.
In addition, Net Taker Volume on Binance Futures also recorded a large negative value of –$319 million on January 20. This reading shows heavy market selling pressure and is the second time this month the number has crossed the –$300 million mark.
The post Is Bitcoin Heading for $60K? Bear Flag Signal Explained appeared first on CryptoPotato.
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