Is Bitcoin heading towards $60,000? Bear flag signal explained

Bitcoin is trading below $90K as analysts warn that a break from key support could lead to a further decline towards the $60K price zone.

Bitcoin drops below $90,000 due to global market jitters

Bitcoin traded around $95,000 all weekend but lost momentum as global markets opened. The move followed new tensions between the US and EU, along with moves in Japanese bond markets, which led to increased pressure on risky assets, enough to push them down from $95,500 to below $92,000.

The cryptocurrency made a small recovery later in the day but fell again early on Tuesday, reaching a low of $87,900 before bouncing back to around $89,000. At the time of writing, Bitcoin’s price is around $89,100. The asset is down 2% in the last 24 hours and almost 6% in the last week (according to CoinGecko data).

Bear flag breakdown could send BTC towards $60,000

Bitcoin’s recent price action forms a classic bear flag on the daily chart. This pattern follows a steep decline of almost 32%, from a high of almost $126,000 to $85,000. Since then, BTC has been trading within an ascending channel, which is seen as a temporary pause before another decline.

Crypto analyst Crypto Patel posted,

“$BTC tests critical $87K bear flag channel support. A breakdown and sustained close below this level opens the way to a $60K liquidity zone.”

The pattern suggests that if the $87,000 support fails, the price could fall another 31% and reach the $60,000-$61,000 range. As previously reported, veteran trader Peter Brandt also noted that there is a risk of Bitcoin falling into the $58,000-$62,000 range if this setup materializes.

Furthermore, Michaël van de Poppe, founder of the MNF Fund, said that the current chart shows Bitcoin hitting recent lows, with RSI levels almost oversold. He noted: “We could see an uptick in the short term, not a reversal.” For a real turnaround to occur, Bitcoin would need to break through multiple resistance levels that are still above the current price.

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The markets aren’t great. #Bitcoin falls apart in range and begins to plummet as geopolitics deteriorates.

The peak fear is happening everywhere as gold gains double digits week after week.

Davos is happening now, extra meeting on Thursday (maybe)… pic.twitter.com/NeDUNhdklv

— Michaël van de Poppe (@CryptoMichNL) January 20, 2026

The broader market is also in a fragile state. Bond yields are rising, gold is gaining strength and geopolitical concerns are weighing on investor confidence. With world leaders meeting in Davos on Thursday, traders expect more price swings.

Whales intervene as sales increase

More than $1 billion in leveraged crypto positions were wiped out as Bitcoin fell below $90,000 (per CoinGlass). At the same time, the activity of major wallets has increased, according to to data from CryptoQuant analyst Amr Taha. On January 20, more than $400 million worth of BTC was sent to spot exchanges. A similar move was seen on January 15, followed by a sharp decline to $96,000.

Furthermore, Net Taker Volume on Binance Futures also recorded a large negative value of –$319 million on January 20. This value shows heavy selling pressure in the market and marks the second time this month that the figure has crossed the –$300 million mark.