Bitcoin (BTC) is trading above $90,000 amidst escalating geopolitical unrest and a high-stakes political clash between U.S. President Donald Trump and Federal Reserve Chairman Jerome Powell. However, a prominent crypto analyst warns that three distinct bearish technical patterns are signaling a potential drop to the $70,000 level.
Crypto analyst Doctor Profit highlighted a triple bearish setup forming across higher timeframes. The first is a large bearish divergence on weekly and monthly charts, indicating weakening momentum despite high prices. The second is a bearish flag formation that points directly toward the $70,000 region. The third is a potential head-and-shoulders pattern that could complete before a broader sell-off.
Doctor Profit noted that a short-term rally toward a liquidity pool between $97,000 and $107,000 is possible but would not alter the overall bearish structure. He outlined two potential paths to $70,000: a direct breakdown from the bearish flag or a completion of the head-and-shoulders pattern first.
Adding to the bearish pressure, the analyst flagged "massive amounts" of heavy insider selling that has continued without slowdown since August 2025, describing it as the largest scale of selling he has observed. This activity suggests rising underlying market stress, compounded by a fragile macro backdrop including banking sector strain and forced liquidations linked to the silver market.
Technically, Bitcoin is at a critical juncture, having been rejected from the $94,500 high-time-frame resistance and now testing the 200-day moving average (MA). A sustained break below this key level could trigger a rapid decline toward the $80,000 support range, where stronger structural support resides.
The macro uncertainty is intensifying due to the Trump-Powell clash. Reports confirm the U.S. Department of Justice has opened a criminal investigation involving Powell, linked to testimony about approximately $2.5 billion in renovations to the Federal Reserve's headquarters. This political friction challenges the perceived independence of the Federal Reserve, historically a source of increased volatility for risk assets like Bitcoin.
Upcoming events such as U.S. CPI inflation data and the January 15 vote on the CLARITY Act may affect short-term price action, but analysts suggest they are unlikely to change Bitcoin's broader bearish trajectory. Not all forecasts are pessimistic; asset manager VanEck recently projected BTC could reach nearly $2.9 million by 2050 under a base-case scenario where it captures a significant share of global trade settlement and central bank reserves.
