The recent price movement of Bitcoin suggests the emergence of a bearish continuation pattern known as an inverted flag, indicating a potential extended period of correction ahead.
Since early 2023, the volume of Bitcoin transfers on its blockchain has steadily declined.
Bitcoin’s price has fallen below its 50-day exponential moving average, reinforcing the prevailing negative sentiment in the market.
The leading cryptocurrency, Bitcoin, experienced a roughly 3% decline during Wednesday’s U.S. trading session and is currently valued around $91,000. This pullback highlights persistent selling pressure near $94,000 and marks BTC’s third unsuccessful attempt to surpass this resistance level since December 2025. The downward momentum intensified as U.S.-based spot Bitcoin ETFs recorded significant volatility totaling $243.2 million. Could this signal another drop toward $80,000?
On-Chain Activity Remains Muted Despite Price Recovery
In early January 2026, Bitcoin rallied from approximately $87,268 to reach a peak near $94,792. This surge briefly lifted market optimism and raised hopes for continued gains.
Nevertheless, analyst AxelAdlerJr recently pointed out via Twitter that total value transferred across the Bitcoin network has been declining consistently since early 2023—a trend that persisted through 2025 into this year—reflecting diminished fund movements between addresses.
This divergence shows that while market prices climbed during this period, actual network usage did not follow suit. On-chain metrics such as reduced transaction counts and smaller transfer sizes from retail investors indicate waning participation by everyday users compared to previous cycles.
A variety of external influences appear to shape current conditions: institutional capital inflows facilitated by spot Bitcoin ETFs; corporate treasury allocations into BTC; positive endorsements from prominent U.S. political figures; and supportive messaging circulated widely within crypto communities—all contributing to heightened awareness without necessarily increasing transactional activity on-chain.
Market participants seem inclined toward holding their positions rather than frequent blockchain transfers—betting on future appreciation instead of active trading or spending at the base layer level.
Bitcoin Price Consolidates Within Bear Flag Formation
The past seven weeks have seen Bitcoin trade sideways with difficulty maintaining levels above $95,000. Daily charts reveal swings in both directions but no decisive moves by buyers or sellers to establish control.
A closer examination reveals consolidation occurring after recent downward momentum loss confined within two converging trendlines—a classic bear flag pattern emerging on BTC’s chart.
This technical setup typically signals replenishment of bearish energy allowing sellers to regain dominance and push prices lower again. Currently priced at about $91,008—just under 3% away from testing the lower boundary—the coin remains trapped inside this formation.
The fact that BTC trades beneath both its 100-day and 200-day exponential moving averages underscores prevailing negative sentiment across broader timeframes.
If prices break decisively below these support levels it could trigger accelerated selling pressure potentially extending corrections down toward around $81,000 with further breakdowns possible thereafter.
BTC/USDT -1d Chart
Conversely if buyers manage to push above the upper boundary of this bear flag pattern successfully they may regain some control over price action attempting renewed upward momentum for BTC assets in coming sessions.