Bitcoin (BTC) Death Cross Raises Fears of 70% Price Drop

Bitcoin is trading near $89,500 as a two-day death cross and a bearish flag increase downside risk, with analysts targeting targets of $60,000 to $40,000.

Bitcoin (BTC) is trading at around $89,000 at press time. In the last 24 hours, the price has dropped slightly, while the 7-day change shows a 7% drop. With trading volume reaching $39 billion, traders are watching the charts as new technical signals suggest further declines may follow.

The Death Cross appears again

Crypto Crew University reported that Bitcoin has printed a 2-day death cross. This occurs when the 50-period moving average crosses below the 200-period moving average. It is a pattern that many traders see as a bearish signal.

In 2014, 2018 and 2022, the same death cross appeared in a similar position. After each one, Bitcoin fell by 50% to 70%. Crypto Crew University noted that each of these drops was preceded by a brief bounce. “That rebound has often been the trap for the bulls,“They said, referring to a brief rally that tends to entice traders to return before the next bearish leg.

⚠️ #Bitcoin has printed a 2-day death cross in a historically important place.

The last 3 times this happened (2014, 2018, 2022), BTC fell by 50% to 70%. 📉

History also shows a rally to 50 MA first…
That bounce has often been the trap for bulls.

Are you paying attention? 🧐 pic.twitter.com/Edf68G5pAI

– Crypto Crew University (@CryptoCrewU) January 22, 2026

Additionally, another analyst, Titan of Crypto, aware that Bitcoin is still moving within an ascending wedge that has been developing for years. The price recently touched the upper trend line and has since retreated. On the current chart, a bearish flag is forming within that wedge.

Bearish flags often appear after a rapid move down. If the bottom of the pattern is broken, the asset tends to continue falling. Titan of Crypto noted that if the current flag turns lower, the next key level could be the bottom of the wedge. This trend line has acted as support during previous corrections.

Bitcoin Price Targets Between $40,000 and $60,000

Lofty, another market observer, suggested that the current cycle looks almost identical to 2021. wrote,

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“If the 4-year cycle is still in play, $BTC will fall to $40,000 in two weeks.”

As previously reported, veteran trader Peter Brandt also mentioned that if the current setup turns lower, Bitcoin could reach between $58,000 and $62,000.

However, traders on the Kalshi prediction platform estimate There is a 64% chance that Bitcoin will surpass $100,000 before June 2026. This shows that some are still expecting higher prices in the long term despite the short-term risks.

Meanwhile, Crypto Waterman reported that large holders have been buying a lot of Bitcoin during the recent crash. These wallets contain between 1,000 and 10,000 BTC.

“The bottom is very close now,” they posted.

They also mentioned that in both 2017 and 2021, similar accumulation phases occurred just before large rallies. While traders debate whether the top has already been reached, some believe the market is preparing for a bigger move.