5 Bear Market Signals Are Flashing for Bitcoin This January

Bitcoin is currently facing volatility, dropping nearly 2.5% to $92,663 amid geopolitical tensions. Analysts are highlighting five signals suggesting a potential bear market in 2026. First, a bearish Kumo Twist has appeared on Bitcoin's weekly chart, a pattern that historically preceded drawdowns of 67% to 70% in past cycles. Second, Bitcoin is struggling below key technical barriers, notably its 365-day moving average near $101,000, and has failed to retest the median level of the Gaussian Channel, suggesting a more aggressive bear market phase could begin. Third, historical drawdown patterns show that current corrections (around 30%) are modest compared to past cycle peaks (74% to 81%), implying further declines are possible. Fourth, the Bull-Bear Market Cycle Indicator shows BTC is in bear market territory, suggesting lower levels are likely. Finally, on-chain data reveals increased Bitcoin inflows to exchanges dominated by mid- to large-sized holders, signaling growing distribution activity rather than accumulation. While these signals point toward a fragile market phase, the ultimate direction remains uncertain.

(Source：BeInCrypto)