Is Bitcoin Heading For $60K? Bear Flag Signal Explained

Bitcoin is trading below $90K as analysts warn that a break of key support could lead to further declines in the $60K price area.

Bitcoin (BTC) is testing a key support level after a sharp decline from its peak. It dropped below $90,000 recently and is moving above the lower limit of the bearish chart pattern. Analysts are watching as the risk continues to rise, with some pointing to $60,000 as the next target.

Bitcoin Slips Below $90K on Global Market Jitters

Bitcoin spent the weekend trading around $95,000 but lost momentum as global markets opened. The move followed fresh tensions between the US and the EU, as well as moves in Japanese bond markets, which led to increased pressure on risk assets, enough to drop from $95,500 to below $92,000.

The cryptocurrency recovered slightly later in the day but slipped early Tuesday again, hitting a low of $87,900 before pulling back to around $89,000. At the time of writing, Bitcoin has an estimated value of $89,100. The asset is down 2% in the last 24 hours and almost 6% in the last week (via CoinGecko data).

Bear Flag Split Could Send BTC Towards $60K

Bitcoin’s recent price action is forming a classic bear flag on the daily chart. This pattern follows a steep decline of about 32%, from highs near $126,000 to $85,000. Since then, BTC has traded within an ascending channel, which is considered a temporary stop before another decline.

Crypto analyst Crypto Patel posted,

“$BTC is testing the key support of the $87K bear channel. A further breakout and close below this level paves the way to the $60K currency area.”

The pattern suggests that if the $87,000 support fails, the price may drop another 31%, reaching the $60,000-61,000 area. As previously reported, veteran trader Peter Brandt also noted the risk of Bitcoin falling to the $58,000–$62,000 range if this setup plays out well.

In addition, Michaël van de Poppe, founder of the MNF Fund, said that the current chart shows Bitcoin breaking recent lows, with RSI levels close to oversold conditions. He noted, “We’ve seen a temporary bounce, not a pullback.” For a real reversal to occur, Bitcoin will need to break through multiple resistance levels that remain above the current price.

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Markets are not good. #Bitcoin it goes down the grade and starts to go down as the country’s politics get worse.

High scares are happening everywhere, with gold prints gaining double digits week after week.

Davos is happening now, more meeting on Thursday (probably)… 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 national concerns are weighing on investor confidence. As world leaders gather in Davos on Thursday, traders expect more price volatility ahead.

Whales Come In As They Sell Properties

More than $1 billion in spent crypto positions were liquidated as Bitcoin fell below $90,000 (per CoinGlass). At the same time, activity from large funds has increased, according to data from CryptoQuant analyst Amr Taha. On January 20, BTC worth more than 400 million dollars was sent to see the exchange. A similar move was seen on January 15, followed by a sharp drop to $96,000.

In addition, the Net Taker Volume on Binance Futures also recorded a large negative value – $ 319 million on January 20. This reading shows the pressure of selling in a difficult market and for the second time this month the number exceeded the mark – $ 300 million.