Bitcoin (BTC) Death Cross Sparks Fears of 70% Price Crash

Bitcoin trades near $89.5K as a 2-day death cross and bear flag raise downside risk, with analysts eyeing $60K–$40K targets.

Bitcoin (BTC) is trading at around $89,000 as of press time. Over the past 24 hours, the price has dipped slightly, while the 7-day change shows a drop of 7%. With trading volume reaching $39 billion, traders are watching the charts as new technical signals suggest more downside may follow.

Death Cross Appears Again

Crypto Crew University reported that Bitcoin has printed a 2-day death cross. This occurs when the 50-period moving average crosses below the 200-period moving average. It’s a pattern that many traders view as a bearish sign.

In 2014, 2018, and 2022, the same death cross appeared in a similar position. After each one, Bitcoin dropped between 50% and 70%. Crypto Crew University pointed out that each of these drops was preceded by a short bounce. “That bounce has often been the bull trap,” they said, referring to a brief rally that tends to lure traders back in before the next leg down.

⚠️ #Bitcoin has printed a 2-day death cross in a historically important position.

The last 3 times this happened (2014, 2018, 2022), BTC fell 50–70%. 📉

History also shows a rally to the 50 MA first…
That bounce has often been the bull trap.

Are you paying attention? 🧐 pic.twitter.com/Edf68G5pAI

— Crypto Crew University (@CryptoCrewU) January 22, 2026

Moreover, another analyst, Titan of Crypto, posted that Bitcoin is still moving inside a rising wedge that has been developing for years. The price recently touched the upper trendline and has since pulled back. On the current chart, a bear flag is now forming within that wedge.

Bear flags often show up after a fast move down. If the lower part of the pattern breaks, the asset tends to continue falling. Titan of Crypto noted that if the current flag breaks lower, the next key level could be the bottom of the wedge. This trendline has acted as support during previous corrections.

Bitcoin Price Targets Between $40K and $60K

Lofty, another market watcher, suggested that the current cycle looks almost identical to 2021. They wrote,

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“If the 4-year cycle is still in play, $BTC will dump to $40,000 in two weeks.”

As previously reported, veteran trader Peter Brandt also mentioned that if the current setup breaks lower, Bitcoin could reach between $58,000 and $62,000.

However, traders on prediction platform Kalshi estimate a 64% chance that Bitcoin will break $100,000 before June 2026. This shows that some are still expecting higher prices long-term despite short-term risks.

Meanwhile, Crypto Waterman reported that large holders have been buying Bitcoin heavily during the recent dip. These wallets hold between 1,000 and 10,000 BTC.

“The bottom is very close now,” they posted.

They also mentioned that in both 2017 and 2021, similar accumulation phases came just before major rallies. While traders debate whether the top is already in, some believe the market is setting up for a bigger move.