“Bearish Pennant” Signals Possible Bitcoin Drop to $55,000
The risks of an extended February correction in digital gold remain high. The negative technical setup coincides with rising activity from large market participants.
20% Downside Risk
On the daily chart of the leading cryptocurrency, a “Bearish Pennant” pattern is forming.

BTC/USDT daily chart on Binance. Source: TradingView.
This pattern appears when, after a sharp decline (the “flagpole”), price consolidates within a narrowing range. A breakdown below the lower boundary of this formation typically leads to another downward impulse comparable in scale to the initial move.
A confirmed break below support could trigger a decline toward $56,000 in February (around 20% from current levels). Conversely, a breakout above the upper trendline and the 20-day EMA near $72,700 would invalidate the bearish scenario.
“Whale” Activity
Negative expectations are reinforced by on-chain data. According to CryptoQuant, the seven-day moving average of Bitcoin inflows from large holders reached a record 0.619. For comparison, the indicator stood at 0.4 at the beginning of the month.

Whale Inflow metric dynamics. Source: CryptoQuant.
The indicator tracks the share of the ten largest transactions in the total volume of exchange deposits. According to analyst Darkfost, the growth of this metric indicates increasing selling pressure from large players.
See also: "Coinbase Identifies Two Levels That Could Determine Bitcoin’s Fate and Outlines Four Scenarios"
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