Earlier today, Bitcoin’s price plunged to an intraday low of $86,673 amid significant market turbulence, as reported by CoinGecko data. After this sharp decline, the leading cryptocurrency has rebounded slightly and is now trading around $87,208.
A Warning Signal
Renowned trader Josh Olszewicz recently shared a cautionary message on social media suggesting that Bitcoin might be approaching another downward correction.
1W $BTC
approaching a breakdown into the Ichimoku Cloud; tax loss harvesting likely exacerbating pressure here—either way, it’s a concerning indicator.
This would also indicate a classic bear flag breakdown. pic.twitter.com/nVAEbwJLMi
— CarpeNoctom (@CarpeNoctom) December 26, 2025
By analyzing the weekly chart with the Ichimoku Cloud tool, Olszewicz highlights that Bitcoin is nearing a critical point where it could slip into the cloud zone.
This development signals that Bitcoin’s upward momentum may be faltering and suggests potential further declines toward the lower boundary of this cloud area.
An Additional Bearish Element
The trader points out tax loss harvesting as another key bearish factor influencing current market dynamics.
This tactic involves investors selling off losing assets before year-end to offset capital gains taxes from profitable trades elsewhere in their portfolio.
Olszewicz anticipates that such tax-driven selling will intensify downward pressure on prices throughout December.
The Bear Flag Breakdown Pattern
The flagship digital asset appears poised for what technical analysts call a bear flag breakdown—a pattern characterized by an initial sharp drop (the flagpole), followed by sideways consolidation (the flag).
A breakdown occurs when prices fall below this consolidation phase’s support level, often signaling continuation of the downtrend ahead.