Bitcoin, 5 Bearish Signals Detected… Increased Possibility of Further Decline

2026-01-20 01:31:10

Source: DigitalToday Original Title: Bitcoin Shows 5 Bearish Signals… Increased Possibility of Further Decline Original Link: As Bitcoin declines and returns to the $92,000 range, signs of a full-fledged bear market are being detected in the market.

Recently, five major technical, historical, and on-chain indicators all forecast a downturn, increasing investor caution.

Key Bearish Signals

Ichimoku Cloud Twist

On the weekly chart, a ‘Kumo Twist’( has been observed. This occurs when the two lines of the Ichimoku Cloud cross, reversing the cloud’s direction, and in past cases, has been associated with 67~70% sharp declines. After the weekly cloud turned bearish in the past, Bitcoin experienced strong downward momentum, which is interpreted as a market structure change rather than a short-term plunge.

Moving Average Breakdown

Bitcoin is currently trading below the 365-day moving average) at $101,000(, a key resistance level that previously prevented recovery during the 2022 bear market. Gaussian channel analysis on the 5-day chart also shows Bitcoin losing its midline, signaling an early stage of a strong downtrend.

Historical Data Analysis

Historical data also supports the possibility of decline. Unlike previous corrections where peaks in 2013, 2017, and 2021 fell by 75.9%, 81.2%, and 74% respectively, this correction has only reached about 30%. This suggests further downside potential. Market cycle indicators indicate that the bear phase started in October 2025, but it has not yet entered an extreme decline phase.

On-Chain Large-Scale Sell Signal

On-chain data analysis shows increased inflows to exchanges from holders of 10~100 BTC and 100~1000 BTC, indicating large-scale selling activity. This suggests that the strategy is shifting from accumulation to active selling.

Overall Assessment

Overall, Bitcoin’s technical, historical, and on-chain indicators all point to bearish signals, with the likelihood of further declines increasing. Investors should prepare for market volatility.

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