Bitcoin (BTC) is trading near $95,500 after a brief move toward $98,000 earlier this week. While the market remains active, analysts are watching a series of chart signals and technical levels that may influence the cryptocurrency’s short-term direction.
Sell Signal Appears on Weekly BTC Chart
A weekly chart posted by Ali Martinez shows a new sell signal on the Supertrend indicator. The last time it appeared, Bitcoin entered a sharp downtrend that resulted in a deep correction. A later buy signal came near the bottom, just before the following rally. This recent shift is raising concerns among some traders about a possible move lower.
$BTC: This time is different… Super cycle incoming! pic.twitter.com/buYFAMzZpA
— Ali Charts (@alicharts) January 16, 2026
Moreover, Crypto Patel shared a chart outlining Bitcoin’s history of deep pullbacks after major peaks. In earlier cycles, corrections of 77% and 84% followed all-time highs of $69,000 and $19,666. The price eventually found support in zones labeled as bullish order blocks.
Bitcoin recently tested a long-term resistance trendline around $126,000 and pulled back. The possibility of a 60% decline to key support zones is being considered as part of a repeating cycle structure. Patel asked,
“What if Bitcoin crashes to $50K… just because it can’t break $125K?”
However, a separate chart from Merlijn The Trader shows a possible double bottom forming. The structure relies on the price holding above $95,500, with a breakout level marked near $102,000. If confirmed, the projected move could reach $110,000.
Merlijn added that holding $95,500 supports the bullish case, while falling below $87,500 would cancel the setup. These levels are now being used by traders to manage risk and prepare for either continuation or breakdown.
Sentiment Shifts as Volatility Returns
Bitcoin’s current price shows a slight 24-hour decline, while still holding a weekly gain. A recent delay in a US Senate crypto market structure bill added pressure to the market. Over $237 million in liquidations were reported across crypto markets in the past day, affecting more than 113,000 traders (per CoinGlass).
Meanwhile, the BTC Fear and Greed Index has shifted back into “greed” territory after months in fear, as previously reported. While this reflects increased confidence, past trends show that extreme sentiment can precede short-term corrections. Bitcoin remains at a key point, with both bullish and bearish setups in play.
The post Bitcoin (BTC) Sell Signal Sparks Fears of Major Price Drop appeared first on CryptoPotato.