The image of the bathroom in Bitcoin: $84k at risk and the pattern warning of deeper declines

The cryptocurrency market experienced an episode of extreme volatility that left investors reevaluating their positions. Bitcoin, currently trading at $84.07K with a gain of +1.74% in the last 24 hours, shows technical signals worth paying attention to after recent turbulence. What happened in the market was a combination of factors that triggered a significant correction: between $600 million and over $1,000 million in leveraged long positions were abruptly liquidated.

Massive liquidations reveal the fragility of excessive leverage

When Bitcoin’s price reached critical levels near $92,000-$95,000, automatic position closing orders surged. This domino effect amplified the decline beyond what market fundamentals would justify. Traders with excessive leverage were shaken out of the market in a “cleansing” process that highlighted the risks of operating with disproportionate positions.

The macroeconomic context also played a relevant role: geopolitical tensions, volatility in Treasury bond yields, and capital flows into “safe” assets like gold caused Bitcoin to behave as a pure risk asset, susceptible to movements in traditional stock markets.

The technical picture shows a clear Bear Flag structure

Analyzing the chart pattern circulating among analysts, the technical scenario presents a pattern that warrants caution. The “Bear Flag” is formed by a prior violent drop (the “mast” in orange) followed by a narrow recovery channel where the price attempts to consolidate. This technical pattern is significant because it has a specific theoretical target: an extension of the decline toward $62,000.

While this is an extreme scenario, technical analysts consider it possible if key supports are broken. The current price of $84.07K is in a decision zone: above the immediate support but still far from levels of massive buying.

The breaking point: $87k-$88k are vital for recovery

Support levels between $87,000 and $88,000 serve as the most important defensive line at this moment. If Bitcoin manages to stabilize above $90,000 with consistent volume, it could ease the pressure from automated trading algorithms and start building strength for a more solid recovery.

The 24-hour trading volume of $1.36B reflects moderate participation, suggesting that buyers are waiting for a better entry opportunity but lack full confidence to make massive purchases at these levels. Market sentiment remains divided: some see this movement as the start of a deeper bearish cycle, while others interpret it as a technical pause to reload before continuing the bullish trend.

Vigilance on key supports and possible scenarios

The key for upcoming movements will depend on whether Bitcoin can hold the $87,000-$88,000 zone without major incidents. A clear breakdown below these levels would open the door to validating the Bear Flag pattern with a target at $62,000. Conversely, a rejection in this zone with recovery candles could indicate the end of the correction and the start of accumulation for new highs.

The current moment demands patience and rigorous risk management. Investors should stay vigilant on these technical images as the market defines its next direction.