Bitcoin fell 11% from its $111K all-time highs as traders say BTC price could drop to $97K if key support levels don’t hold amid rising trade tensions.
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.
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.
