Bitcoin experienced a dramatic selloff on January 21, 2026, crashing below the critical $90,000 support level and reaching as low as $86,888. The cryptocurrency tanked approximately $2,000 in minutes, marking a 9% decline over a 48-hour period. This sharp drop triggered massive liquidations in the derivatives market, with over $360 million in leveraged long positions being wiped out.
The decline began after Bitcoin failed to hold above the $92,500 support level, leading to a cascade below $91,000, $90,500, and ultimately the psychologically important $90,000 threshold. A low was formed at $87,784 before a minor recovery wave brought the price back above $88,500. However, Bitcoin remains below the 100-hour Simple Moving Average and the 23.6% Fibonacci retracement level of the recent decline from a swing high of $95,475 to the $87,784 low.
Technical indicators point to continued bearish pressure. The hourly MACD is gaining pace in the bearish zone, and the RSI for BTC/USD is now below the 50 level. A bearish trend line is forming with resistance at $94,200 on the hourly chart. Analysts note that if Bitcoin fails to rise above the $91,650 resistance zone, it could start another decline, with immediate support near $88,800 and major support at $88,000 and $87,500. A break below $85,000 could accelerate losses.
The selloff occurred against a backdrop of broader market turmoil. Gold surged to $4,820 and continues climbing rapidly toward the $5,000 mark as traders seek safe-haven assets. Meanwhile, US stocks recorded their worst performance since October 2023, indicating a significant risk-off sentiment across traditional financial markets.
