- Trending
- Comments
- Latest
Bitcoin is trading near $90,000 after breaking below the critical $100,000 support level, with veteran trader Peter Brandt warning the cryptocurrency could plunge as low as $58,000 to $62,000 if a classic bear flag pattern plays out—a potential 30% decline from current prices.
The world’s largest cryptocurrency by market value, Bitcoin, has faced a price drop, and according to multiple independent market analysts, on-chain data and technical chart patterns indicate growing downside risk.
As of today’s trading session, 20th January 2026, Bitcoin is trading near $90,000, down roughly 2% over 24 hours, with intraday lows dipping below $91,000. Key psychological support at $100,000 has already been breached, a technical pivot many traders viewed as a critical floor.
Veteran market strategist Peter Brandt, whose technical analyses have long commanded attention in trading communities, flagged a classic bearish pattern in bitcoin’s price charts that he believes could drive BTC toward the mid-five-figure zone. In a recent post on X, Brandt wrote;
“58k to $62k is where I think it is going BTC,” – Peter Brandt, veteran trader (on X).
Brandt’s outlook is reinforced by short-term traders and analysts who see a bear flag breakdown pattern unfolding, a formation suggesting lower prices ahead when confirmed by volume and momentum metrics.
Another chart analyst, Ali Martinez, likened the setup to patterns observed during previous deep corrections, noting structural similarities to the 2022 bear market.
On-chain signals also paint a chilling portrait. Metrics tracking net profits and losses among recently active bitcoin holders show realised losses for the first time in several months.
Despite the growing bearish narrative, not all market data points toward a dramatic plunge. On-chain analytics firm Glassnode noted that while momentum has cooled and short-term indicators are negative, broader structural signals hint at consolidation rather than a sustained downtrend.
“Current on-chain trends indicate accumulation and neutral momentum, suggesting price action may stabilize around current levels before any decisive directional move.” – Glassnode research lead
Institutional flows have also provided mixed signals. While some derivatives markets show caution and elevated uncertainty, spot and futures demand, particularly tied to bitcoin exchange-traded funds (ETFs), has at times hinted at renewed interest from larger capital pools.
Still, these flows have not yet translated into renewed bullish conviction strong enough to counter weaker technical patterns.
Market dynamics beyond pure price charts also matter. Broader risk sentiment in global finance, influenced by macroeconomic trends, regulatory signals, and geopolitical developments, has contributed to heightened volatility across risk assets, including equities and digital currencies.
Traders remain attentive to catalysts like central bank policy decisions and macro data releases, which have historically impacted Bitcoin’s trajectory in both directions.
For now, the coming days and weeks will be pivotal. A sustained break below key support zones around $88,000 to $90,000 could embolden bearish momentum, potentially validating deeper downside scenarios near $62,000.
Market participants are accordingly divided, with risk-averse holders trimming exposure while contrarians watch for potential bargain entries.
Regardless of the path ahead, Bitcoin’s current technical and on-chain signals are a reminder of the asset’s trademark volatility and the complex interplay of factors shaping its price action.
