Bitcoin And Ethereum Face Renewed Bearish Pressure

Bitcoin and Ethereum, the two giants of the cryptocurrency world, are facing a period of pronounced weakness, rattling traders and investors who had grown accustomed to the sector’s wild surges. As of January 27, 2026, both digital assets have confirmed bearish structures, with Bitcoin’s technical signals echoing the darkest days of its 2022 bear market and Ethereum struggling to find its footing amid persistent selling pressure.

For Bitcoin, the latest weekly candle close brought a technical event that has traders on edge: its 21-week exponential moving average (EMA) crossed beneath its 50-week EMA. According to analysis published by Rekt Capital, this so-called bearish crossover is a classic signal that has historically foreshadowed extended downturns. The last time this pattern emerged was in April 2022, just before Bitcoin’s brutal descent to a macro bottom of $15,600 in November of that year—a level that has held ever since. Rekt Capital noted, “The Bitcoin Bull Market EMAs have officially crossed over,” underscoring the gravity of the moment. This technical development not only suggests that the current cycle may be entering a new bearish phase, but also aligns with Bitcoin’s well-known four-year price pattern, potentially setting the stage for a challenging period through 2026.

The mood among traders has shifted sharply after Bitcoin’s recent rejection near the $98,000 mark. Crypto analyst Crypto Patel, sharing insights on X, pointed to the failed attempt to break through the $94,000–$98,000 neckline resistance as a clear sign that sellers remain in control. He explained that Bitcoin had confirmed a failed Head and Shoulders pattern, followed by a bear-flag breakdown—a sequence that, in technical analysis, typically signals further downside. “As long as BTC remains capped below the neckline, the broader trend remains decisively bearish,” Patel emphasized. He further warned that unless Bitcoin reclaims and holds above $92,000, any rallies are likely to be short-lived, presenting opportunities for sellers rather than signs of recovery.

Other market watchers are closely monitoring the $89,000 level, which Ardi, another analyst, described as a critical threshold for a potential short squeeze. Should Bitcoin break decisively above this zone, it could force bearish traders to cover their positions, potentially triggering a rapid upward move. However, with liquidity near $86,000 already taken, the focus is now on whether bulls have the strength to overcome the overhead resistance. For now, the next downside target looms between $75,000 and $70,000—a possible 22% slide from current levels if the bearish momentum persists.

Bitcoin’s technical malaise isn’t just a matter of price charts. Its performance relative to traditional assets is also raising eyebrows. Daan Crypto Trades, yet another prominent trader, highlighted that Bitcoin is now trading at levels relative to silver reminiscent of the 2022 bear market lows, when the collapse of the FTX exchange triggered a cascading sell-off across the crypto sector. “$BTC is now trading at FTX collapse levels relative to $SILVER,” Daan Crypto Trades remarked, calling the chart “insane.” What’s more, silver managed to make its recent move in about half the time it took Bitcoin to complete its bull trend this cycle. The BTC/Silver ratio is now approaching territory last seen between 2017 and 2020. Both assets have posted significant gains in U.S. dollar terms since the 2022 bottom, but as Daan Crypto Trades pointed out, “Which also just shows what the real reason is for these moves. Depreciation in fiat.” This observation underscores a broader theme: while both Bitcoin and silver have appreciated, much of those gains reflect the declining purchasing power of fiat currencies rather than pure outperformance.

Meanwhile, Ethereum, the second-largest cryptocurrency by market capitalization, is also under pressure. As of January 27, 2026, ETH was trading at approximately $2,923 against USDT, according to technical analysis from ZebPay. Like Bitcoin, Ethereum is locked in a bearish trend, with price action characterized by lower highs and lower lows since breaking down from a previous distribution zone. The asset is trading below all major moving averages, a classic sign of weakness, and a long-term descending trendline continues to cap any upside rallies.

Volume analysis supports the bearish case for Ethereum. The initial breakdown occurred on relatively higher volume, confirming that sellers were in control, but recent trading has seen declining volume—suggesting a period of consolidation rather than active accumulation by buyers. The daily candles are small-bodied and continue to print lower highs, signaling weak conviction among bulls and a lack of any strong reversal pattern. As the analysis noted, “No bullish reversal pattern (like bullish engulfing or strong pin bar) has formed near support.”

Immediate support for Ethereum lies in the $2,900 to $2,850 zone. If this support fails, a further decline toward $2,700 could be in the cards. On the upside, strong resistance is set between $3,100 and $3,300, making any recovery an uphill battle for now. The report concluded, “Ethereum remains in a clear bearish trend, trading below all major moving averages with repeated lower highs confirming seller dominance. The recent breakdown from rising support suggests bearish continuation, as buying interest remains weak on pullbacks.”

These developments come against a backdrop of broader uncertainty in the crypto markets. Both Bitcoin and Ethereum had staged impressive rallies in the years following the 2022 bear market, but the current technical signals suggest that the tide may be turning once again. For Bitcoin, the recurrence of the EMA crossover and its struggles against key resistance levels evoke memories of previous cycles, when similar patterns preceded extended downturns. For Ethereum, the persistent inability to break above major moving averages and the lack of bullish momentum paint a similarly cautious picture.

Yet, in the world of cryptocurrencies, sentiment can shift rapidly. A decisive move above the $89,000–$92,000 range for Bitcoin could trigger a short squeeze and force a reassessment of the bearish thesis. For Ethereum, reclaiming the $3,100–$3,300 resistance band would be an early sign that buyers are regaining control. Until then, however, caution remains the watchword for traders navigating these choppy digital waters.

As the market digests these signals, both veteran investors and newcomers alike are reminded that crypto’s volatility cuts both ways—rewarding the bold, but punishing the unwary. For now, the charts are clear: the bears have the upper hand, and the next few weeks could prove decisive in determining whether this is just another correction, or the start of a deeper downturn.