Bitcoin has broken below the critical $91,600 support level, sparking concerns of a potential shift into bearish territory. Analysts suggest this price action could indicate further downside, with some projecting significant corrections ahead.

Technical Analysis: Head and Shoulders Pattern

Piotr Matys, senior forex analyst at Intouch Capital Markets, highlights the possible formation of a “head and shoulders” pattern—a classic indicator of a trend reversal. According to Matys, a decisive break below $91,600 serves as a strong bearish signal, which could accelerate selling pressure.

Price Targets: $88,000 and Beyond

Alex Kuptsikevich, a senior market analyst, predicts that if bearish sentiment persists, Bitcoin could slide to $88,000 in the near term. However, he warns that a sharper correction to $74,000 remains a distinct possibility if momentum continues to favor sellers.

Shifting Market Sentiment in 2025

This bearish sentiment marks a stark contrast to Bitcoin’s strong 2024 rally, which was driven by the approval of a US Bitcoin ETF and pro-crypto statements from President-elect Donald Trump. However, enthusiasm has faded in 2025 as traders adopt a cautious approach, waiting for concrete policy actions from the new administration after Trump’s upcoming inauguration on January 20.

The crypto market’s outlook appears uncertain, with critical support levels and policy developments playing a decisive role in shaping Bitcoin’s trajectory in the coming weeks.