There is no holiday atmosphere in the crypto market on Christmas Eve; instead, a series of technical alerts are flooding the screens.

Yesterday, Bitcoin ruthlessly broke through the key support level of $88,000. I was looking at the chart data when my phone kept buzzing with notifications—"Bearish Triangle Formed!""MACD Death Cross Appeared!""Large Funds Continue to Withdraw!" These words kept popping up one after another on the screen.

Carefully comparing with the candlestick chart, Bitcoin's current price is $87,936, down 7% from the high of $94,600. The MACD indicator on the 4-hour chart shows a clear death cross, indicating that the short-term bearish momentum is indeed prevailing.

Even more noteworthy is the market sentiment index. Based on the current trend, the fear index should stay between 20 and 40. Everyone knows that such extreme emotions often backfire.

**What’s really happening on the technical side**

On this Christmas Eve, the market didn’t intend to warm people's hearts. Bitcoin not only broke below the psychological level of $88,000 but also triggered several bearish signals simultaneously.

The most eye-catching is the "Bearish Triangle" pattern. The pattern basically consists of two parts—an initial sharp decline (the flagpole), followed by a period of consolidation (the flag). Technical analysts see this as a warning that the downtrend may continue.

What’s more unsettling is that the 50-day moving average has crossed below the 200-day moving average. This is the legendary "Death Cross." Historically, whenever this signal appears, the medium- to long-term trend usually begins to turn downward.

The data is in front of us, and all technical indicators point in the same direction. But there’s a detail worth pondering—extreme fear itself can sometimes be a contrarian signal.