4 Red Months in a Row? Bitcoin Faces Rare 2018-Style Crash Signal

Bitcoin (BTC) is trading under pressure after failing to break a key resistance level. The asset remains below $90,000, with technical patterns suggesting a deeper move toward $70,000 in the coming days or weeks.

Price Fails at Key Resistance

Bitcoin was rejected at the $94,000 to $98,000 range after several attempts to break through it. This area acted as neckline resistance in a larger technical setup. After the rejection, the price moved sharply lower, confirming a bearish trend. A failed Head and Shoulders pattern and a bear flag breakdown support the current move.

The asset hovers around $88,000 at press time. Analysts are tracking three support levels: $80,000, $75,000, and $70,000. According to analyst Crypto Patel, these levels match the expected move from the breakdown, which points to a possible 22% decline. The trend is considered bearish until the price regains and holds above $92,000.

Over the past seven days, Bitcoin has fallen more than 6%. Despite a small recovery of under 1% in the last 24 hours, the asset remains near its lowest point in a month. The market is waiting for a decision from the US Federal Reserve and earnings reports from major tech companies. Both events could affect sentiment across risk assets.

Bitcoin’s decline has also followed a series of large liquidations in the derivatives market. These forced sell-offs added pressure during a week marked by wider uncertainty in global markets, including sharp moves in currencies and US bonds.

Key Technical Levels in Focus

According to Material Indicators, a CoinMarketCap contributor, the 50-day simple moving average near $90,000 is acting as resistance. Liquidity worth over $50 million is sitting above that level, making it harder for bulls to regain control. The 21-day moving average is near $91,500 and could add to the 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 crosses below the longer one, it could add to the bearish pressure.

Trend Precognition is showing a new signal on the $BTC Daily chart.

Bulls have some work to do to turn this into a meaningful rally before the monthly close, but in the Wild West of Crypto, anything’s possible.

Key Points:

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

— Material Indicators (@MI_Algos) January 27, 2026

In addition, another analyst, BitBull, reports that Bitcoin is sitting near the Active Investor Mean at $87,500. This often acts as a decision point—if held, it may attract support. If lost, the asset may fall toward $80,700, which has historically served as a deeper support level.

Short-term holder cost basis is above $96,000, meaning many are now in a loss. This creates selling pressure above the current price. Long-term holders, by contrast, remain in profit, with their average cost closer to $56,000.

Crypto analyst Aman also observed, “$BTC is on the edge of a 4th consecutive red month,” 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 final bottom.

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