Market sentiment has soured as Bitcoin (BTC) tumbled out of an ascending channel, dipping below $86,000 early Monday, sparking fears of a deeper correction. Technical analysis reveals that BTC failed to break above the $91,450 horizontal resistance on the 4-hour chart, leading to a sharp decline that exited the ascending channel and reached support at the major ascending trendline. Momentum indicators had been overextended, suggesting a corrective impulse was overdue.
In the daily timeframe, Bitcoin is now caught between two trendlines: a lower ascending trendline dating back to October 2023 and an upper descending trendline from July 2025. The RSI indicator has broken through a downtrend and may be confirming this breakout. Meanwhile, on the weekly chart, the correction from all-time highs has paused, with Stochastic RSI indicators hitting bottom and crossing back up.
Adding to the bearish outlook, crypto analyst Tony "The Bull" Spilotro highlighted that Bitcoin has lost a critical linear trendline on the log chart that began in 2024. "The fractal isn't a guarantee, but a valid example of losing a linear trend line on a log chart not being something you should ignore," Spilotro stated. Historically, such breaks have preceded price crashes, with some analysts warning that BTC could fall as low as $50,000.
Despite the warnings, some perspectives suggest this may be a necessary short-term pullback, and if the major trendline holds, Bitcoin could rally back to upper resistance levels. However, a break below this support could lead to further declines, potentially forming a double bottom around $80,000.
USDT
XRP
ETH
SOL
RLUSD