Bitcoin Price Challenge Key Support as Risk-Off Mood Intensifies

• The Bitcoin price is poised for a 2% drop and challenges the bottom trendline of the bearish reversal pattern called head and shoulder.
• According to Coinglass data, the crypto market witnessed forced liquidation of over 226,164 traders with today’s sell-off, and total liquidations coming in at $1.01 billion.
• A sentiment shift marked Bitcoin’s weakest social outlook since November 21, 2025.

On Thursday, January 29th, the crypto market witnessed a notable sell-off which pushed the Bitcoin price below $84,000. The accelerated bearish momentum can be attributed to macro economic headwinds as Fed’s rate paused to 3.50-3.75% and dissent for cuts reinforced caution. In addition, the market witnessed a safe-haven rotation as investors fled from risk assets like stocks and cryptocurrencies to traditional money like Gold. Will the BTC price loss.

BTC Under Pressure as Fed Signals Caution and Spot ETF Outflows Persist

By the press time, the Bitcoin price trades at $84,288, registering an intraday loss of 5.5%. The move lower was consistent with continued caution in world financial markets following the Federal Reserve decision to keep its target interest rate range of 3.50-3.75%. 

Recent communications from Fed officials suggested a cautious approach to future adjustments, prohibiting forward-looking anticipation of rapid policy loosening and encouraging repositioning away from risk-sensitive positions.’

In addition, the U.S-based spot BTC ETF continued to see substantial outflows in last January. According to Sosovalue, these ETFs collectively witnessed a -$19.64 million outflow on Wednesday, further reinforcing the market selling pressure.

In a recent tweet, on-chain analytics platform Santiment, revealed an obvious spike of negative commentary toward Bitcoin, reaching the most bearish outlook so far in 2026. The positive-to-negative commentary ratio on the platform changed decisively lower with negative sentiment volumes spiking notably as the price entered the $84,200 zone – its softest reading since the last November 21, 2025. 

This pattern was similar to previous times of sharp negativity experienced during similar pullbacks such as mid-December 2025.

Additional factors included different performances in other asset classes: equity indices were under pressure from select corporate updates, while precious metals showed interim reversals following earlier advances, contributing to uneven flows affecting crypto dynamics.

Trading liquidity in the digital asset venues remained relatively thin, with further responsiveness to cross-market movement and persistence of elevated short-term volatility.

Bitcoin Price Risk Major Downturn As Head and Shoulders Pattern Emerges

In the last two weeks, the Bitcoin price witnessed a V-top reversal from $97,340 to current trading value of $84,300, registering a loss of 14%. This pullback shows a fresh lower high formation, indicating a sell-the-bounce sentiment intact among market participants.

The declining BTC price, backed by increasing trading volume, further accentuates the seller’s conviction to drive a prolonged downfall. With sustained selling, the coin price could plunge another 2% and challenge a long-coming support trendline at $82,600.

An analysis of the daily chart shows that this support trendline is part of a traditional reversal pattern called head and shoulders. The chart setup is characterized by three peaks; a left shoulder, a middle head and a right shoulder.

If the pattern holds true, the coin price could plunge below the bottom trendline, accelerating the market selling pressure. The post-breakdown fall could push the price to $80,500, followed by a dip to $75,500.

The momentum indicator ADX at 25% indicates that the sellers have sufficient room to drive a prolonged downtrend.

On the contrary note, if buyers managed to hold the aforementioned trendline, the Bitcoin price could enter a short-consolidation phase to recoup its bullish momentum.