As the market erases its 2026 gains, Bitcoin (BTC) has fallen to its lowest level in weeks and is trying to regain a key level. Some market watchers have warned that a downward revision to November is possible if the volatility continues.
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Bitcoin Breaks From Key Support
On Wednesday, Bitcoin continued its retreat and hit a three-week low of $87,263. The cryptocurrency has been trading between the $90,000-$96,000 range since the beginning of the year, reaching a two-month high of $97,924 last week.
However, the crypto market has experienced significant volatility in the past few days, fueled by renewed national tensions. As a result, BTC retraced 10% last week, falling to the middle of its $84,000-$94,000 range.
During this performance, trader Wealthmanager noted that the flagship crypto retraced all of its 2026 gains, briefly falling below its year-opening and POC. He added that this is an important level that must be held in the coming days, because the loss of this area can bring the price back to the $80,000 mark.
Analyst Crypto Jelle has highlighted a two-month bear flag formation on BTC’s daily chart, which suggests a major downside possibility. “Go down again, and the bears will be completely back in the driver’s seat,” he asserted.
Similarly, Market watcher Lyvo Crypto revealed a similar formation, explaining that Bitcoin broke the rising support of the pattern after the recent price action and lost its two-month high.
To the trader, this indicates that “the momentum is in the control of the bears” and “if so [bearish momentum] deputy, we could see a free fall” that could result in a reassessment of the $78,000 property.
In the case of the collapse of the November decline, he advised that “from then on, we will wait for the confirmation of the double bottom and look for a relief rally.”
BTC To Repeat Its 2020 Price Action?
Crypto Bullet has drawn parallels between BTC’s current price action and its performance in early 2022. The analyst confirmed that the current price action is close to its 2022 fractal, which could indicate that a major correction is imminent.
Meanwhile, Bitcoin retreated more than 40% from the end of its 2021 cycle, followed by a “dead cat jump” in early 2022 and a second major correction towards new lows.
Now, the top crypto is showing the same performance as it has recovered 30% since the peak of October and is currently trying to recover the lost ground. However, Crypto Bullet noted that there are two important differences in its 2022 fix.
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First, Bitcoin has yet to retest the 50-week and 200-week Moving Averages (MAs). Second, the timing hints that the final split may not be until later in Q1.
“If we match the fractal high of 2022 and the high of October 2025, we will see that there is still one month of PA to make that last leg and test the 50-Week MA or the 200-day MA,” he explained.
He concluded that one pump over $100,000 is likely, but advised caution as fundamentals are tested.
As of this writing, Bitcoin is trading at $89,890, an increase of 1.2% in the daily period.
Featured image from Unsplash.com, Chart from TradingView.com
