The ‘bear flag’ pattern appearing on Bitcoin’s four-hour chart indicates a potential drop to $97,000. Some traders speculate that Bitcoin’s price could plummet to as low as $85,000 if crucial support levels, such as the $100,000 psychological level and the yearly opening close to $92,000, are breached.
Bitcoin’s BTCUSD price is exhibiting a classic bearish pattern on lower time frames, stoking concerns that a breakdown could result in a fall to $97,000 or lower.
The bear flag is a bearish continuation setup formed when the price consolidates upward in a parallel channel following a sharp downward move. In Bitcoin’s situation, the flag began to form after BTC hit nearly $103,100 on May 31. Over the weekend, the consolidation has continued, with the price repeatedly testing the flag’s support line.
The bearish continuation will be validated if the price falls below the flag’s lower boundary at $104,800. The pattern’s projected downside target is currently near $97,690, calculated by adding the height of the initial flagpole to the breakout point.
Data from Cointelegraph Markets Pro and TradingView reveals that the BTCUSD pair has declined 6.3% from its all-time highs above $111,000. Despite closing 11% higher in May, traders are contemplating the future direction of Bitcoin’s price. The month of June has historically seen mixed results, with an average loss of 0.3%.
Noted crypto analyst Daan Crypto Trades suggests monitoring the mid-range at $99,600 and the previous all-time high at $108,000 during the first week of June. A break above $108,000 could push the BTCUSD pair towards its $111,900 all-time high, where it would likely encounter significant resistance, leading to a fall back into the range. Conversely, a break below $99,600 could see the pair fall lower before finding comfort from the 200-day simple moving average at $97,600.
As Cointelegraph reported, Bitcoin traders are studying the weekly and monthly closes for hints as to where BTC price action might be headed next, with the psychological levels at $100,000 and $97,000 remaining key areas of interest.
This article does not offer investment advice or recommendations. Every investment and trading move carries risk, and readers should conduct their own research when making a decision.
