Bitcoin price levels to watch as ‘bear flag’ breakdown targets $97K
Key takeaways:
The emergence of a bear flag on the four-hour chart projects a Bitcoin price drop to $97,000.
Traders say BTC price may drop as low as $85,000 if key support levels are broken, including the $100,000 psychological level and the yearly opening at around $92,000.
Bitcoin’s
BTCUSD
price is forming a classic bearish pattern on lower time frames, triggering fears that a breakdown could lead to a drop toward $97,000.
Breakout points to $97K target
Bitcoin’s price action has formed a textbook bear flag pattern on the four-hour chart, a bearish continuation setup formed when the price consolidates upward in a parallel channel after a sharp downward move.
In Bitcoin’s case, the flag began forming after BTC bottomed at nearly $103,100 on May 31. The consolidation persisted over the weekend, with the price continuously retesting the support line of the flag.
The bearish continuation will be confirmed once the price breaks below the lower boundary of the flag at $104,800. The pattern’s projected downside target is now sitting near $97,690, measured after adding the height of the initial flagpole to the breakout point.
For crypto analyst Daan Crypto Trades, the mid-range at $99,600 and the previous all-time high at $108,000 are crucial levels to watch during the first week of June.
“I think there’s a good chance that the first week is likely a move that can be faded upon seeing the first signs of local reversals” at either of these points, the trader said in a June 1 post on X.
An accompanying chart showed that a break above $108,000 would see the
BTCUSD
pair rise toward its $111,900 all-time high, where it would likely meet strong resistance, occasioning a drop back into the range.
Similarly, a break below $99,600 would see the pair drop lower before finding solace from the 200-day simple moving average at $97,600.
“No strong bias toward either direction here, so will just remain nimble and play with what I get.”