Bitcoin (BTC) Death Cross Sparks Fears of a 70% Price Crash

Bitcoin is trading near $89.5K as a two-day death cross and bear flag increases downside risk, with analysts eyeing targets of $60K-$40K.

Death Cross appears again

Crypto Crew University reported that Bitcoin has printed a two-day death cross. This happens when the 50-period moving average falls below the 200-period moving average. It is a pattern that many traders consider a bearish sign.

In 2014, 2018 and 2022 the same death cross appeared in a similar position. After each price, Bitcoin fell between 50% and 70%. Crypto Crew University pointed out that each of these drops was preceded by a short jump. “That bouncing has often been the bull trap,they said, referring to a short rally that tends to lure traders back in before the next leg down.

⚠️ #Bitcoin has imprinted a two-day death cross at a historically important position.

The last three times this happened (2014, 2018, 2022), BTC fell 50-70%. 📉

History also shows a rally to the 50 MA as the first…
That jump has often been the bull trap.

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

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

Additionally, another analyst, Titan of Crypto, said posted that Bitcoin is still moving within a rising wedge that has been developing for years. The price recently reached the upper trendline and has since retreated. On the current map, a bear flag is now forming within that wedge.

Bear flags often appear after a quick downward movement. If the lower part of the pattern breaks, the asset tends to fall further. Crypto’s Titan noted that if the current flag breaks lower, the next key level could be the bottom of the wedge. This trendline has acted as support during previous corrections.

Bitcoin price targets between $40,000 and $60,000

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

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

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

However, traders on prediction platform Kalshi estimation a 64% chance that Bitcoin will break $100,000 before June 2026. This shows that despite the short-term risks, some still expect higher prices in the long term.

Meanwhile, Crypto Aquarius reported that large holders bought Bitcoin heavily during the recent dip. 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 major rallies. While traders debate whether the top has been reached yet, some believe the market is gearing up for a bigger move.