4 Red Months in a row? Bitcoin is facing a rare 2018-style crash signal

Bitcoin is trading below $90,000 after rejecting major resistance, with technical signals pointing towards $70,000 and increasing bearish pressure.

Price fails at major resistance

Bitcoin was rejected between $94,000 and $98,000 after several attempts to break through. This area acted as neckline resistance in a larger technical setup. After the rejection, the price fell sharply, confirming a bearish trend. A failed head and shoulders pattern and a failed bear flag support the current move.

The asset is hovering around $88,000 at the time of writing. Analysts are tracking three support levels: $80,000, $75,000 and $70,000. According to analyst Crypto Patel, these levels correspond to the expected A step beyond the crisis, indicating a possible decline of 22%. The trend is considered bearish until the price breaks back above $92,000.

Over the past seven days, Bitcoin has fallen by more than 6%. Despite a small recovery of less than 1% in the last 24 hours, the value remains near a one-month low. The market is awaiting a decision from the US Federal Reserve and earnings reports from major technology companies. Both events can influence sentiment among risky assets.

Bitcoin’s decline also followed a series of major liquidations in the derivatives market. This forced sell-off added pressure during a week marked by greater uncertainty in global markets, including sharp moves in currencies and US bonds.

Key technical levels in focus

According to CoinMarketCap contributor Material Indicators, the 50-day simple moving average near $90,000 acts as resistance. More than $50 million worth of liquidity is above that level, making it harder for bulls to regain control. The 21-day moving average is near $91,500 and could increase resistance if the price rises again.

A crossover between the 21-day and 50-day moving averages is expected next month. If the shorter average moves below the longer average, this could increase bearish pressure.

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Trend prediction shows a new ⬆️ signal on the $BTC Daily chart.

Bulls still have some work to do to turn it into a meaningful rally before the month-end, but in the Wild West of Crypto, anything is possible.

Key points:

50-Day SMA (~$90k) is defended by $50M+ in… pic.twitter.com/rqU3V4qoNd

— Material Indicators (@MI_Algos) January 27, 2026

Additionally, another analyst, BitBull, said reports that Bitcoin is close to the Active Investor Mean at $87,500. This often acts as a decision point; if held, it can attract support. At a loss, the asset could fall towards $80,700, which has historically served as a deeper support level.

The short-term holder cost basis is above $96,000, meaning many are now making losses. This creates selling pressure above the current price. Long-term owners, on the other hand, continue to make profits, with the average cost closer to $56,000.

Crypto analyst Aman too observed“$BTC is on the brink of a fourth consecutive red month,This is a rare pattern last seen in 2018. As we previously reported, market analysts remain cautious about current price levels, noting that recent lows may not mark a definitive low.