$BTC Analysis: Downtrend Confirmed? Key Levels to Watch! 📉🚨
The recent Bitcoin price action on the daily chart has shown a clear break in structure, moving from a multi-month uptrend into a potential medium-term downtrend. With price currently trading below key moving averages, caution is advised.
📊 Key On-Chart Data
Current Price: Around $87,639Daily Open (Jan 16, 2026): $95,550Change (since open): -0.42% (or roughly -7.5% since the start of Jan 16 trading day)MA(25) (Medium-term avg): $90,986MA(99) (Long-term avg): $96,393
📉 Technical Analysis: A Bearish Shift
Trend Indicators (MAs): The price has decisively dropped below both the 25-day and 99-day moving averages (MA). The MA(25) (yellow line) is now acting as a dynamic resistance, and the shorter-term MA appears to be crossing below the longer-term MA, which is a classic bearish signal.
Price Action: The chart shows a series of lower highs and lower lows after a peak near $98,000 mid-month. This confirms a structural shift towards a downtrend on this timeframe.
Volume: Trading volume has remained relatively consistent, but we are seeing significant selling pressure as bulls fail to defend key support zones.
🎯 Key Levels & Outlook
Immediate Support: The critical support zone is around $87,000 to $85,000. If this level fails to hold, we could see a deeper drop. Immediate Resistance: The MA(25) near $91,000 is the immediate resistance. A break and close above this level is needed to regain bullish momentum.
Outlook: $BTC is currently precarious. A sustained break below the $85,000 level could see prices target the next major support zone around $75,000–$80,000. Traders should be cautious and use tight risk management.
Disclaimer: This is not financial advice. Prices are based on current data and can change rapidly. Always do your own research (DYOR) before making trading decisions.