#Bitcoin gets rejected from a key level of resistance at the weekly 21 moving average. This is not what I wanted to see on bitcoin as I shall explain. Does the recent drop on bitcoin warn of another crash on the crypto? We look at the charts. Video by Alessio Rastani.
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As of late January 2026, Bitcoin (BTC) has faced a significant rejection from the 21-week moving average, a level often viewed as the divider between bull and bear market structures. After a sharp correction from its late-2025 peak near $126,000, BTC is currently struggling to maintain psychological support at $90,000.
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Key Market Insights
--Weekly 21 MA Rejection: Technical analysts note that Bitcoin’s inability to close above the 21-week exponential moving average (EMA)—currently hovering near $109,900—signals a shift toward a bearish or consolidated regime.
--Imminent "Death Cross": A high-priority warning has emerged as the 21-week EMA is on the verge of crossing below the 50-week EMA. Historical data from April 2022 suggests this "death cross" can precede substantial drawdowns, with some analysts forecasting a potential retracement to the $75,000–$80,000 base zone.
--Current Support Levels: Buyers are currently attempting to defend the $88,000–$90,000 band. A sustained failure to hold these levels could trigger further liquidations toward major demand zones at $85,000 and potentially $60,000 (200-week EMA).
--Market Sentiment: The Fear & Greed Index is currently showing a score of 25 (Extreme Fear), reflecting the impact of nearly $2.1 billion in long position liquidations over the past several days.
Macro and Fundamental Drivers
The recent price weakness in January 2026 is attributed to a combination of geopolitical tensions, global market stress, and fresh tariff threats from the U.S. administration. While institutional inflows into spot Bitcoin ETFs remained positive during December, a "supply overhang" from older holders selling into rallies has capped immediate upside momentum.
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