Bearish Pattern Spells Trouble for Bitcoin (BTC) Bulls

Bitcoin is trading near a major decision point. It is holding between strong resistance at $90,000 and a potential support zone between $70,000 and $65,000. Traders are watching how the price moves around these levels to gauge the next direction as the year ends.

Bearish Pattern Below $90K

Crypto Patel shared a chart showing Bitcoin forming a bearish pennant, which developed after a 22% drop and shows price tightening into a smaller range. The asset is near $87,900 at press time. Patel wrote,

If the move fails, the target shifts to around $70,000, based on the size of the earlier drop. A further decline to $65,000 remains possible.

Notably, the pennant lines are converging, and the price is sitting near the apex. If the pattern breaks down, it would follow the same direction as the previous move. Patel called these levels “critical” and urged close attention.

Moreover, Lennaert Snyder noted that Bitcoin swept into the $86,900 zone, which he described as an area of interest for long trades. He said,

He also mentioned $85,000 and slightly lower levels as better long setups if the market dips again. On the short side, Snyder said he would wait for a push above $90,600, followed by weakness, before taking action. He added,

Weekly Chart Warning

Ali Martienz shared a chart showing a death cross on the weekly timeframe. This pattern formed three weeks ago, when the 10-week moving average crossed below the 50-week. He pointed out that in past cycles, this signal often came before deeper pullbacks or long sideways periods. Past drawdowns included moves of –54% to –66%.

Martinez also noted that the current rebound could resemble a “dead-cat bounce” like the one seen after the 2021 market peak. As previously reported, Bitcoin is sitting on the 100-week moving average. This level has marked the start of past major cycle corrections.

Long-Term Range Coming Into View

Daan Crypto Trades noted that Bitcoin is close to the lower band of its regression trend, often referred to as the rainbow chart. That zone currently ranges between $60,000 and $80,000. He explained,

As long as the asset remains within this price range, traders are observing how it responds along the lower border. The subsequent action can determine further upward trending or a turn downward into the beginning of 2026.

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