Will Bitcoin Approach $60K? Analyzing the Bear Flag Pattern

Bitcoin (BTC) is reaching crucial support levels after slipping below $90,000 recently, prompting warnings from analysts about a potential drop towards the $60K price zone.

Bitcoin Drops Below $90K Amid Market Concerns

After trading at around $95,000 throughout the weekend, Bitcoin lost steam coinciding with the opening of global markets. This decline has been fueled by rising tensions between the United States and the European Union, along with changes in Japanese bond markets, causing increased pressure on risk assets. Consequently, Bitcoin plummeted from $95,500 to under $92,000.

Although a minor recovery occurred later, prices dropped again to as low as $87,900 before stabilizing around the $89,000 mark. Currently, Bitcoin stands at approximately $89,100, reflecting a 2% decline over the last 24 hours and nearly 6% over the week, according to CoinGecko data.

Bear Flag Pattern Suggests Further Decline

Recent trends in Bitcoin’s price suggest a classic bear flag formation on the daily chart, following a drastic drop of about 32%, from a peak near $126,000 down to $85,000. Since this major drop, Bitcoin has been trading within a rising channel, signaling a brief pause before an expected drop.

Crypto analyst Crypto Patel posted:

“$BTC is testing critical $87K bear flag channel support. Breakdown and sustained close below this level opens path to $60K liquidity zone.”
(Translation: The current levels around $87K are crucial for Bitcoin. A breach may hint at a further decline towards the $60K range.)

Should the $87,000 support fail, predictions indicate Bitcoin could fall another 31%, potentially targeting the $60,000 to $61,000 range. Further analysis from veteran trader Peter Brandt also alludes to the possibility of Bitcoin diving to the $58,000 to $62,000 range, should this scenario unfold.

Additionally, Michaël van de Poppe, founder of MNF Fund, stated that the current chart indicates Bitcoin is likely breaking recent lows, with RSI levels nearing oversold territory. He noted, “We could see a short-term bounce, not a reversal.” A genuine reversal would necessitate a breach of multiple resistance levels that remain above the current price.

“The markets are not great. #Bitcoin breaks down into the range and starts to plummet as geopolitics getting worse.

Translation: Market conditions are tough, with Bitcoin facing substantial downward movement as geopolitical tensions escalate.

With over $1 billion in leveraged crypto positions erased as Bitcoin dipped below $90,000, significant trading activity involving large wallets has surfaced, reflecting the troubling market sentiment.

Lastly, as bond yields rise, gold strengthens, and geopolitical issues cast shadows on investor confidence, market participants expect further volatility in the upcoming days.