Bearish Pattern Means Trouble for Bitcoin (BTC) Bulls

Bitcoin is trading near $90,000 as traders watch for a breakout or collapse, with patterns pointing to a move toward $107,000 or toward $65,000.

Bearish pattern below $90K

Crypto Patel shared a chart showing Bitcoin forming a bearish pennant, which developed after a 22% decline and shows a price tightening in a narrower range. The asset stands at almost $87,900 at the time of writing. Patel wrote,

“$BTC needs to break $90,000 to unlock the $107,000 upside.”

If the move fails, the target shifts to around $70,000, based on the size of the previous drop. A further decline to $65,000 remains possible.

Notably, the pennant lines are converging and the price is near the top. If the pattern breaks, it follows the same direction as the previous move. Patel called these levels “critical‘ and urged attention.

Furthermore, Lennaert Snyder noted that Bitcoin reached the $86,900 zone, which he described as an interesting area for long trades. He said,

“Before I enter the long, I would prefer to see some liquidations first.”

He also mentioned $85,000 and slightly lower levels as better long setups if the market falls again. On the short side, Snyder said he would wait for a push above $90,600 followed by weakness before taking action. He added:

“If we see a serious recovery of more than ~$90,600, I will look for continuation lungs.”

Weekly chart alert

Ali Martienz shared a chart with a death cross on the weekly time frame. This pattern emerged three weeks ago, when the 10-week moving average fell below the 50-week mark. He pointed out that in previous cycles, this signal often preceded deeper pullbacks or long sideways periods. Previous recordings include moves from –54% to –66%.

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Three weeks ago, Bitcoin $BTC printed a death cross between the SMA of 10 weeks and that of 50 weeks. pic.twitter.com/FMYQmpTrTb

— Ali Charts (@alicharts) December 29, 2025

Martinez also noted that the current recovery could resemble a “dead cat bouncingas seen after the 2021 market peak. As previously reported, Bitcoin is sitting at the 100-week moving average. This level marked the beginning of previous major cycle corrections.

Long-term reach is coming into view

Daan Crypto Trades noted that Bitcoin is close to the lower band of its regression trend, also known as the rainbow chart. That zone currently ranges between $60,000 and $80,000. He explained,

“This is generally where BTC is during its bear market and won’t drop below it (aside from 2022).”

As long as the asset remains within this price range, traders observe how it reacts along the lower bound. The subsequent action could determine a further uptrend or a downtrend into early 2026.