The Bitcoin price has broken below a critical technical structure, leading analysts to warn of a potential decline toward the $70,000 support level. BTC recently dropped under $85,000 and was trading near $84,400, following a decisive rejection from the $95,000–$98,000 resistance zone.
The technical breakdown is significant. Bitcoin had been trading within a rising channel for weeks, but this pattern has now failed. The price slipped below the channel's lower boundary and accelerated downward, forming and subsequently breaking a bear flag pattern. This technical setup often signals a continuation of the downtrend, with measured targets pointing significantly lower than current prices.
Analysts are highlighting key support levels to watch. The first major zone sits around $75,000. If that level fails, the next area of interest is near $70,000, where buyers have previously stepped in. On the upside, a close above $90,600 is needed to improve the chart structure.
The sell-off occurred amid broad market declines, with crypto underperforming traditional assets. While the Nasdaq and gold recovered from session lows, Bitcoin and other major cryptocurrencies held near their lows. Ethereum (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) were all down roughly 7% over 24 hours.
Matt Mena, crypto research strategist at 21Shares, emphasized that holding above $84,000 is "critical." A break below could see Bitcoin test $80,000 and then the $75,000 lows from April 2025. Despite the near-term pressure, Mena maintains a bullish outlook, expecting BTC to reach $100,000 by the end of Q1 2026, or even $128,000 if macro conditions improve.
Other analysts warn of a deeper correction. John Glover, CIO of Ledn, views the sell-off as part of a broader pullback from October's record highs near $126,000, with a potential target of $71,000. He noted that Bitcoin is still trading as a risk asset, selling off alongside equities despite its "digital gold" narrative. Russell Thompson of Hilbert Group also sees a path to $70,000, stating, "The technical levels have all been taken out on the downside, and I don’t see much support here for bitcoin."
