Bitcoin is trading near $87,800 after briefly falling to $86,000, its lowest level in over a month. Over the past seven days, the asset has dropped by more than 5%. In the last 24 hours, it slipped nearly 1%. Analyst Sees Corrective Bounce Forming Crypto analyst Junkie says Bitcoin has completed a five-wave bearish pattern based on Elliott Wave Theory, which often marks the end of a move. The analyst expects a short-term bounce before any further decline. The chart shared shows a potential ABC correction forming. This includes a rise (A), a dip (B), and another push up (C). If this plays out, Bitcoin could retest a trendline from previous lows and possibly reach the $91,000 to $92,000 range. Junkie added: “We may have a bit further down to go ($84k) until 5 waves finishes but if we haven’t reversed already, we will.” A separate view from The Maverick of Wall Street points to a bear flag forming on the weekly chart. This type of setup often appears after a sharp fall. It forms a small upward channel, followed by another drop. Bitcoin bear flag is playing out, see you at $60k $BTC pic.twitter.com/jsdXG8gKZQ — The Maverick of Wall Street (@TheMaverickWS) January 25, 2026 The breakdown from the flag points to a possible move down to $60,000. This matches a 31% fall from the recent range. Bitcoin has also fallen below its 50-week simple moving average (SMA), which is around $101,000. The 200-week SMA, near $57,800, may be the next support if the downtrend continues. On-Chain Metrics Point to Ongoing Weakness Data from Alphractal shows that Bitcoin’s NUPL (Net Unrealized Profit/Loss) is falling but still above zero. In the past, cycle bottoms usually came only after this turned negative. That level signals full capitulation, which has not happened yet. Another key metric, Delta Growth Rate, has already turned negative. This suggests that speculative buying has slowed. A recent CryptoQuant report also shows that more holders are now selling at a loss. This is the first time in over two years that profit margins have dropped this much. Bitcoin’s drop below $88,000 happened as macro pressures built. A possible US government shutdown and the Fed’s rate decision have made investors more cautious. The market is now sitting on key support levels. A break below may open the way for lower prices. A bounce, however, could retest previous highs in the short term. The post Will Bitcoin Bounce? Analysts Split on Next Major Move appeared first on CryptoPotato .
