BTC Technical Setup Flashes Red: Bears Target $76K as Chart Patterns Warn of Deeper Correction

Bitcoin’s technical landscape has shifted markedly bearish, with multiple analytical signals converging on a troubling conclusion: further downside may be imminent. At current levels around $90.31K, the leading cryptocurrency faces mounting pressure from a textbook bear flag drawing on its daily timeframe—a pattern historically associated with trend continuation in the direction of the prior move.

Technical Indicators Paint Pessimistic Picture

The bearish case rests on converging technical signals across multiple indicators. RSI (Relative Strength Index) readings on extended timeframes are flashing divergence warnings, suggesting momentum is weakening even as prices attempted to hold recent levels. Simultaneously, MACD (Moving Average Convergence/Divergence) alignment has shifted to bearish territory, reinforcing concerns about the sustainability of any bounce.

One prominent market analyst highlighted the severity of the technical setup, noting that since Bitcoin’s correction began from highs near $80,000, the cryptocurrency has struggled to establish meaningful upside conviction. Instead, it’s traced an upward-sloping channel—exactly the pattern that often precedes rapid reversals in downtrending markets.

Where Do Bears Target Next?

Under this bearish scenario, two key price levels have emerged as likely targets. The first represents an approximate 17% decline from current levels, reaching toward the $76,000 zone. If that level fails to hold, a more severe washout becomes possible, with some traders projecting an eventual bottom in the $50,000 region—a level that would represent a 45% total correction from recent peaks.

The commentary surrounding this analysis emphasized macro headwinds: despite central bank rate cuts and equity market strength, cryptocurrency has decoupled from traditional bullish catalysts. “Bitcoin advanced 750% from 2022 lows,” one analyst noted, suggesting the explosive rally has already priced in significant optimism. The suggestion: the bull market phase may have run its course, with prudent traders now positioning for the recovery opportunity that follows rather than betting on continued upside.

The Bull Market Support Band Offers Tactical Hope

Not all market participants have surrendered to bearish positioning. Traders monitoring the bull market support band—a technical band constructed from 21-period simple moving average (SMA) and 20-period exponential moving average (EMA)—identified a potential inflection point.

Bitcoin recently closed above this support band for its fourth consecutive daily candle, marking its longest stay above the band since early October. Historically, when price respects this support level during pullbacks, it has often signaled the continuation of longer-term uptrends rather than the onset of full reversals.

“If Bitcoin successfully holds above this technical support structure across multiple daily closes, the intermediate-term thesis would reverse toward bullish,” according to technical analysis commentary. Such a scenario would require disciplined buying pressure and would contradict the bearish flag drawing pattern analysis.

The Path Ahead: Confluence and Confluence

The crypto market now finds itself at a critical juncture where bull and bear arguments both carry merit. The bear flag pattern, divergence signals, and lack of macro momentum support the downside case toward $76K and potentially $50K. Conversely, the technical support band and multiple daily closes above it provide tactical optimism for near-term relief bounces.

Traders are positioned on opposite sides of this debate, with the resolution likely coming in the coming sessions as Bitcoin either breaks decisively below recent support or rallies back toward $100K territory. For now, the technical picture remains contested—a flag drawing that could resolve in either direction.