Bitcoin Breaks Below $90,000 Support: Bear Market Confirmed or Bullish Hope Remains? – BTC TA January 21, 2026

Amidst the global political upheaval in Davos, the Bitcoin price is continuing to be battered mercilessly. While gold streaked to new highs, Bitcoin fell below the critical $90,000 support. Can Bitcoin recover, or is the selling going to remain a feature?

Concerns in the short-term time frame

Source: TradingView

First glance at the short-term chart for the $BTC price does not instil confidence. Not only has the price fallen down through the bottom of the ascending triangle, but it has lost the crucial $90,000 horizontal support. This has now been turned into resistance with a quick candle wick back to this level as confirmation.

A down trend line from $95,000 is being respected, and until the price breaks up and through this, the downtrend will continue. In addition, the longer the price stays below $90,000, the more likely it is that $BTC could fall further. It will be very important for the bulls to hold the $87,500 horizontal support.

A standard retracement for the $BTC price?

Source: TradingView

Zooming out into the daily chart and applying the Fibonacci tool, one can see that the $BTC price came relatively close to the 0.618 Fibonacci level, which is the optimum retracement. The price could still come down and tag this properly, or it could even fall to the lowest Fibonacci level of 0.786 at $84,200.

As far as the bulls are concerned, one more reversal to that 0.618 Fibonacci, which generally lines up with the $87,500 horizontal support, would probably be the preferred outcome.

At the bottom of the chart, the Stochastic RSI indicators for the daily are nearly at the bottom. All the shorter term indicators have already bottomed and are starting to rise. This would indicate that a recovery could be on the way. The bulls will need to take the best possible advantage of this.

Next few days could be crucial

Source: TradingView

The weekly time frame chart shows that the major trendline runs through the middle of the 0.5 Fibonacci and the $90,000 level. Because this is such a big time frame there is the chance that the $BTC price will close the week back above that $90,000 level, thereby keeping it as support. 

The rest of this week is extremely important for Bitcoin. If the price can reverse back inside the ascending triangle by the end of the week, a successful breakout would still be a possibility. 

On the other hand, if the price takes hold below the major trendline it could then head down to the $80,000 horizontal support. This would be the last line in the sand before a drop to $74,000/$69,000, which was the last bull market top. 

The stakes are high. How could Bitcoin react to a major US/Europe trade war? Will its superpower of not being beholden to any third party make it the go-to purchase? We are perhaps about to find out.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.