Analysts Warn Bitcoin Could Drop to $86K as Bearish Wedge Forms

Crypto analyst Don Wedge has warned that regardless of latest Bitcoin features, a bearish rising wedge sample is forming near the $94,000 level, which, if pressured additional, might set off a decline again to the $86,000 help zone.

According to the rising wedge chart shared by Don and interpreted by the market intelligence platform Gigabrain, there’s a basic overhead battle close to the white resistance line at round $98,000, which represents a transparent invalidation level for bears.

Rising Wedge Shows $92K as Critical Support

The crimson help line close to $92,000 marks the final line within the sand, and a break there would affirm the wedge and sure ship Bitcoin again into the $86,000 to $91,000 inexperienced field to hunt for liquidity.

“White resistance line should be damaged so it may be invalidated, two inexperienced traces would be the goal if resistance is damaged,” Don added, pointing to inexperienced targets at $103,000 and $112,000, which might represent bearish invalidation if bulls efficiently defend the $94,000 degree.

Macro dealer Crypto Batsman additionally shared bearish sentiment.

In a latest X submit, the dealer acknowledged that, whereas not intending to scare retail buyers, they need to bear in mind that, on the larger timeframe, Bitcoin’s been pumping recently, however BTC isn’t trying favorable.

Don’t imply to scare you guys, however it is best to actually see this.

Yes, Bitcoin’s been pumping lately.

But on the larger timeframe, $BTC is not trying too good. It’s at present going through the 50-week EMA.

This degree acted as sturdy help all through the bull run, however now that it is… pic.twitter.com/uy4c9QJ1WM

— BATMAN (@CryptosBatman) January 16, 2026

“Price is at present going through the 50-week EMA, and this degree acted as sturdy help all through the bull run, however now that it’s been damaged, it’s flipping into resistance,” he defined.

“I do know it’s lots to absorb. Daily seems bullish, however zoom out and it’s a special story.”

Bitcoin Whale Accumulation at $90K-$92K Meets Sell Walls at $95K

Data from Coinglass reveals the latest Bitcoin rally noticed whales accumulate between $90,000-$92,000, which pushed the worth up towards $95,000, the place sturdy promote partitions emerged.

The market is now consolidating round $93,000 withouta clear reversal sign.

The Bitcoin short-term chart monitoring STH revenue and loss to exchanges exhibits that after weeks of promoting largely at a loss (purple), the final 24 hours printed the largest revenue spike on this whole vary (inexperienced) as the worth grinds increased.

Despite this being optimistic for short-term momentum, traditionally, most of these late revenue spikes have a tendency to seem close to native pattern exhaustion, not at first of a clear leg increased.

As Bitcoin faces renewed sell-side stress from latest patrons, Glassnode insights present consideration shifts towards the Short-Term Holder value foundation, at present located at $98,300.

This degree represents the combination entry worth of latest buyers and serves as a crucial gauge of market confidence.

Bouncing Into Supply#Bitcoin has entered the brand new 12 months with constructive momentum, printing two increased highs and increasing worth to $98k, however the advance now runs instantly right into a traditionally important provide zone.

Read the complete Week On-Chain https://t.co/CfFlebieWM pic.twitter.com/jgMy9vLLsD

— glassnode (@glassnode) January 14, 2026

Sustained buying and selling above this threshold would point out new demand is absorbing overhead provide, permitting latest patrons to stay worthwhile.

Historically, reclaiming and holding above the Short-Term Holder value foundation has marked transitions from corrective phases into extra sturdy uptrends.

The potential of worth to consolidate above $98,300 stays a crucial situation for restoring confidence in pattern continuation and establishing foundations for a sustainable rally.

Short Gamma Zone Increases Volatility Potential

With spot buying and selling across the $95,000-$96,000 space on the time of writing, Bitcoin’s worth has moved right into a short gamma zone extending roughly from $94,000 to $104,000.

Within this vary, sustained worth motion supported by quantity is extra doubtless to set off directional hedging flows, growing potential for quicker motion towards close by high-interest strikes, together with the $100,000 degree.

Glassnode Implied Volatility Index confirms that whereas the chance of a $86,000 draw back looms, the market continues to be positioning for a possible retest of the $100,000 space, whereas concurrently expressing hesitation about sustained acceptance above that degree over longer horizons.

Upside is being focused tactically within the close to time period, however monetized at longer maturities.

The submit Analysts Warn Bitcoin Could Drop to $86K as Bearish Wedge Forms appeared first on Cryptonews.